Lilly to Buy Sleep Drug Maker Centessa in $7.8 Billion Deal

Eli Lilly & Co. agreed to buy sleep drug maker Centessa Pharmaceuticals Plc in a deal worth up to $7.8 billion, a sign the weight-loss medication giant is looking to bulk up its treatment pipeline for other conditions.

Lilly will pay $38 a share for Centessa plus a further $9 a share if three milestone targets are met, according to a statement Tuesday. The total represents a 70% premium to Monday’s close. The upfront payment represents an equity value of about $6.3 billion, with potential additional payments of about $1.5 billion.