New York, Jan 7, 2026, 4:55 PM EST — After-hours
Eli Lilly and Co shares climbed on Wednesday after the drugmaker agreed to buy Ventyx Biosciences in a $1.2 billion deal, pressing ahead with its push beyond blockbuster diabetes and weight-loss drugs. Lilly stock ended up 4.1% at $1,108.09, after touching $1,117.37, for a market value around $1 trillion. reuters.com
The move matters because Lilly’s valuation leaves little room for stumbles. Investors have started to look past the first wave of obesity demand and toward what fills the pipeline later in the decade, especially if pricing gets tougher.
Pills are part of that story, and the timing is tight. Rival Novo Nordisk launched a once-daily Wegovy pill in the United States this week, while Lilly has said it expects a U.S. decision in March on its own weight-loss pill. reuters.com
Ventyx holders will get $14 a share in cash, a 62% premium to the stock’s 30-day volume-weighted average price, or VWAP — a benchmark that weights prices by trading volume — the companies said. Lilly expects the deal to close in the first half of 2026, subject to a shareholder vote and regulatory sign-offs; holders representing about 10% of Ventyx shares have signed support agreements. “There is increasing evidence that inflammation is a key driver of many chronic diseases,” Lilly research chief Daniel Skovronsky said, while Ventyx CEO Raju Mohan said, “We believe that Lilly is an ideal strategic partner.” prnewswire.com
The agreement follows a Wall Street Journal report on Tuesday that Lilly was in advanced talks to buy Ventyx for more than $1 billion. Reuters reported then that Lilly said it does not “comment on business development activity.” reuters.com
A day earlier, Nimbus Therapeutics said it struck a multi-year research and licensing deal with Lilly to develop new oral obesity and metabolic treatments using AI — short for artificial intelligence, software that scans data to help pick drug candidates. Lilly will pay $55 million upfront and in near-term milestones, and Nimbus can earn up to $1.3 billion more in development and commercial milestones plus royalties, if drugs reach the market. reuters.com
The broader tape was uneven. The S&P 500 slipped 0.34% and the Dow fell 0.96%, while the Nasdaq edged higher as investors looked ahead to Friday’s U.S. government payrolls report. reuters.com
Lilly has also been putting money to work outside traditional M&A. Cancer-drug developer Aktis Oncology said Lilly indicated interest in buying about $100 million of shares in its upsized IPO, and IPOX research associate Lukas Muehlbauer said Lilly’s commitment “shows that (Aktis’) cancer-targeting technology has passed the scrutiny of a major industry leader.” reuters.com
Still, the Ventyx assets are clinical-stage, and mid-stage trial wins do not always hold up in larger studies. Any stumble on safety, a longer regulatory path, or faster-than-expected pricing pressure in obesity drugs could cool the bid under Lilly shares.
Next up is paperwork and timing on the Ventyx closing, but the market’s nearer marker is Lilly’s next results. The company’s investor calendar lists a fourth-quarter earnings call for Feb. 4 at 10 a.m. EST, a moment traders will use to press management on 2026 guidance, deal appetite and the obesity-pill timeline. lilly.gcs-web.com
