Lilly to Pay Up to $2 Billion for Obesity Startup Versanis

Eli Lilly & Co. is continuing to grow its reach in weight loss, acquiring obesity drug startup Versanis Bio for as much as $2 billion.

Versanis’ experimental drug, bimagrumab, aims to help people lose weight while preserving their muscle mass. The company is studying the candidate on its own and in combination with semaglutide, the hit obesity drug from Novo Nordisk A/S. Lilly will pay as much as $1.93 billion in cash, including an upfront payment and future payments depending on certain development and sales milestones, according to a statement Friday.