Lilly and Engage Bio tie the knot with $202M acquisition

 

Eli Lilly joins hands with Engage Bio, acquiring the DNA delivery platform developer in hopes of bolstering its genetic medicines portfolio.

Buoyed by its weight-loss windfall, Eli Lilly is continuing its dealmaking streak by buying a preclinical biotech developing a nonviral DNA delivery platform.

The Big Pharma is acquiring Engage Bio for up to $202 million in cash, which includes upfront and milestone payments, according to a Wednesday release.

At the heart of the deal is Engage’s Tethosome platform, tech that is designed to address current limitations in DNA delivery by improving potency, tolerability and redosability. Engage’s platform combines engineered DNA payloads with lipid nanoparticle delivery and the biotech’s own mRNA tech aimed at enhancing localization and boosting expression.

The San Carlos, California–based biotech’s platform is supposed to help create a new class of nonviral DNA medicines, though the company has not publicly disclosed any programs.

Founded in 2021 by CEO Will Olsen—formerly of Rejuvenation Technologies and Luminist Labs—Engage has previously raised “modest seed funding,” Olsen said in a prepared statement. The biotech hasn’t shared specifics on past financings but has received support from SciFounders, Pioneer Fund, Cal Innovation Fund, Y Combinator, the Gates Foundation and the National Institutes of Health, according to the release.

While the newly joined companies didn’t reveal what indications they would be going after, Engage has also received past financial backing from the Cystic Fibrosis Foundation.

Lilly doesn’t currently market any gene therapies, but the pharma has been building out its genetic medicines pipeline. Late-stage programs include lepodisiran, an siRNA therapy made to reduce Lp(a) levels among individuals with elevated heart disease risk, and ixoberogene soroparvovec, a one-time gene therapy for wet age-related macular degeneration. The latter was secured last year in the up to $262 million buyout of Adverum Biotechnologies.

The pharma also touts the adeno‑associated virus (AAV) vector-based gene therapy AK-OTOF, which is being tested for its ability to treat inherited hearing loss.

Last month, Lilly offered up to $2.25 billion to work with AI-focused Profluent Bio on developing new DNA editing tools and more precise treatments for genetic conditions, and another $3.25 billion in cash for in vivo CAR T–focused Kelonia—the third in vivo transaction for Lilly in the past year.

As of the end of April, Lilly had spent nearly $21 billion on M&A activity, with six biotech buyouts in the books for 2026.

https://www.biospace.com/deals/lilly-and-engage-bio-tie-the-knot-with-202m-acquisition