SGTX Sigilon Therapeutics Inc

By Ben Glickman

Eli Lilly said Thursday it would acquire Sigilon Therapeutics in a cash deal with additional contingent value rights.

The pharmaceutical company said it expected the deal to acquire Sigilon for $14.92 per share in cash to close in the third quarter of 2023. In the deal, shareholders of Sigilon may also receive up to $111.64 per share in cash if certain conditions are met, such as the use of Sigilon treatments in human subjects and the receival of regulatory approvals.

The deal is worth a total of up to $309.6 million, excluding shares of Sigilon currently held by Lilly.

Sigilon shares more than quadrupled in pre-market trading Thursday after the announcement. The stock rose 369% to $18.31, after falling 0.8% in Wednesday trading. Shares are still down 12% year to date.

Lilly said the two companies had collaborated since 2018 to develop encapsulated cell therapies, including SIG-002 to treat type 1 diabetes.

The companies said the Sigilon board unanimously recommended shareholders tender their shares.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

June 29, 2023 07:20 ET (11:20 GMT)

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