Key keywords: Eli Lilly, Centessa Pharmaceuticals, sleep-wake disorder treatments, biopharmaceutical acquisition, novel sleep therapeutics, clinical pipeline expansion, central nervous system (CNS) drug development, rare sleep disorder therapies Eli Lilly and Company (NYSE: LLY) announced a definitive agreement in late October 2024 to acquire Centessa Pharmaceuticals plc (Nasdaq: CNTA), a clinical-stage biopharmaceutical firm focused on targeted CNS therapies, in an all-cash transaction valued at approximately $1.4 billion. The deal is designed to accelerate Lilly’s expansion into the high-growth, underserved sleep disorder treatment market, leveraging Centessa’s differentiated late-stage pipeline to address unmet needs for millions of patients globally. Centessa’s lead asset is an oral dual orexin receptor modulator currently in Phase 2 clinical trials, designed to treat narcolepsy, idiopathic hypersomnia, and circadian rhythm sleep disorders. Early trial data shows the candidate reduces excessive daytime sleepiness and cataplexy symptoms with a far more favorable safety profile than existing stimulant-based treatments, which often carry risks of dependency, cognitive impairment, and nighttime sleep disruption. The biotech also has three preclinical candidates targeting rare sleep conditions including Kleine-Levin syndrome and advanced sleep phase syndrome, which affect roughly 180,000 patients in the U.S. and have no approved therapies to date. Under the terms of the agreement, Centessa shareholders will receive $9.50 per share in cash, representing a 128% premium to Centessa’s 30-day volume-weighted average closing price ahead of the announcement. The transaction has been approved by both companies’ boards of directors, and is expected to close in the first half of 2025, pending regulatory approvals and Centessa shareholder approval. Lilly’s global head of Neuroscience Product Development, Dr. Ruth Giménez, noted that sleep-wake disorders impact more than 70 million people in the U.S. alone, and 40% of patients report no meaningful relief from current available treatments. The acquisition allows Lilly to combine its decades of CNS regulatory and commercialization expertise with Centessa’s innovative pipeline, with a target to submit the lead orexin modulator for FDA approval by 2028. Industry analysts project the global sleep therapeutics market will reach $12.6 billion by 2030, driven by rising awareness of sleep health’s links to diabetes, cardiovascular disease, and cognitive decline. Lilly expects the acquisition to be neutral to adjusted earnings per share in 2025 and 2026, and accretive starting in 2027 as lead candidates move to commercial launch.