Eli Lilly and Co. has entered a definitive agreement to acquire Dermira, Inc. for approximately $1.1 billion in cash. Dermira is a biopharmaceutical company dedicated to developing new therapies for chronic skin conditions.

The acquisition will expand Lilly’s immunology pipeline with the addition of lebrikizumab, a Phase III monoclonal antibody designed to bind IL-13 with high affinity that is being evaluated in moderate-to-severe atopic dermatitis. Lebrikizumab was granted Fast Track designation from the U.S. FDA in December 2019. The acquisition also expands Lilly’s portfolio of marketed dermatology medicines with the addition of QBREXZA (glycopyrronium) cloth, a medicated cloth approved by the FDA for the topical treatment of primary axillary hyperhidrosis (uncontrolled excessive underarm sweating).

“People suffering from moderate-to-severe atopic dermatitis have significant unmet treatment needs, and we are excited about the potential that lebrikizumab has to help these patients,” said Patrik Jonsson, Lilly senior vice president and president of Lilly Bio-Medicines. “The acquisition of Dermira is consistent with Lilly’s strategy to augment our own internal research by acquiring clinical phase assets in our core therapeutic areas and leveraging our development expertise and commercial infrastructure to bring new medicines to patients. We look forward to completing the acquisition and continuing Dermira’s excellent work.”

“Since Dermira’s inception, we have been focused on applying strong science to medical dermatology with the goal of finding new ways to treat some of the most common skin conditions that affect millions of people every year,” said Tom Wiggans, chairman and chief executive officer at Dermira. “We are pleased that Lilly has recognized the progress we have made and the opportunities for lebrikizumab and QBREXZA. We share with Lilly a common interest in helping patients through the development of innovative treatments and believe that patients and physicians will benefit from the resources that Lilly can bring to maximize the potential of our programs.”

The transaction is expected to close by the end of 1Q20, subject to customary closing conditions.