Pharma BD Deal Intelligence
Mixed bet: Eli Lilly's $2.4B, 40%-premium buy of DICE Therapeutics landed an oral IL-17 psoriasis platform, but the lead asset DC-806 was scrapped in a 2024 pipeline cull—the thesis now rides entirely on the follow-on candidate DC-853.
Lilly makes fresh bet on IL-17 with $2.4B acquisition of Dice Therapeutics and its DELSCAPE technology platform for oral immunology treatments.
Announced June 20, 2023; $48/share cash (~$2.4B, 40% premium); lead asset DC-806 in Phase II; expected to close Q3 2023.
Lilly dropped lead candidate DC-806 in a Q3 2024 cull and shifted its oral IL-17 psoriasis focus to follow-up DC-853 (improved potency and metabolic stability).
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Eli Lilly agreed on June 20, 2023 to acquire DICE Therapeutics for $48 per share in cash (~$2.4 billion), a ~40% premium, to expand its immunology pipeline; the tender-offer-plus-merger closed August 9, 2023. DICE's DELSCAPE platform develops oral small-molecule alternatives to injectable biologics, led by DC-806, an oral IL-17 inhibitor for psoriasis and other inflammatory diseases. Post-close, the thesis shifted: in a Q3 2024 pipeline cull (disclosed Oct 2024) Lilly dropped DC-806 as its Phase 2 psoriasis program and pivoted to the follow-on candidate DC-853, engineered for higher IL-17A affinity and improved metabolic stability. DC-853 is now Lilly's lead oral IL-17 psoriasis program (Phase 2) and remained in active development as of early 2026, so the deal's value rests on the DELSCAPE oral-IL-17 franchise via DC-853 rather than the original DC-806 asset.
DC-806 is a Phase 2 oral small-molecule IL-17A inhibitor targeting the convenience-oral positioning in psoriasis; it competes across five MOA classes in a biologic-dominated market. Injectable anti-IL-17 biologics (direct mechanistic class): Cosentyx (secukinumab, Novartis, ~$5B global 2023), Taltz (ixekizumab, Lilly, ~$3B), Bimzelx (bimekizumab, UCB, IL-17A/F dual) generate >$10B combined; these are DC-806's direct biologic benchmarks and Lilly's own Taltz franchise creates internal cannibalization. Anti-IL-23 biologics: Skyrizi (risankizumab, AbbVie, ~$8B 2023, fastest-growing dermatology asset), Tremfya (guselkumab, J&J, ~$3.5B), Ilumya (tildrakizumab, Sun) and legacy Stelara (ustekinumab, J&J, IL-12/23) are displacing TNF-era share due to quarterly dosing and durability. Oral TYK2 inhibitors (key oral benchmark): Sotyktu (deucravacitinib, Bristol-Myers Squibb) FDA-approved 2022 for psoriasis per POETYK trials, the only oral biologic-like agent setting the oral-small-molecule tolerability and efficacy bar. Oral JAK inhibitors: Rinvoq (upadacitinib, AbbVie, ~$4B) and Xeljanz (tofacitinib, Pfizer) are approved in PsA and other indications, limited in plaque psoriasis by boxed warning. TNF inhibitors: Humira (adalimumab, AbbVie/biosimilars), Enbrel (etanercept, Amgen), Remicade (infliximab/biosimilars) form the generic/biosimilar floor. Commercial threat for DC-806: matching injectable IL-17 efficacy is biochemically hard for an oral small molecule, Sotyktu has established the oral class pricing corridor, and Lilly must position DC-806 as either Taltz-bridging or biologic-naive mild-to-moderate play.
Eli Lilly completed $2.4B acquisition of DICE Therapeutics ($48/share), gaining DC-806, oral small-molecule IL-17 inhibitor for autoimmune diseases.
DC-806 ran a Phase 2 placebo-controlled psoriasis study (229 patients). In a Q3 2024 pipeline cull (disclosed Oct 2024) Lilly dropped DC-806 as its Phase 2 psoriasis program, pivoting to follow-on DC-853 (improved potency/metabolic stability).
DC-806 targets large immunology market with oral advantage. In development with Lilly resources. $2.4B reflects oral IL-17 opportunity if Phase 2/3 succeeds.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Eli Lilly and Company / DICE Therapeutics Inc. (this deal) | 2023 | $2.4B | 49 |
| Eli Lilly and Company / Boehringer Ingelheim GmbH | 2011 | $444M | 89 |
| Eli Lilly and Company / Loxo Oncology, Inc. | 2019 | $8.0B | 88 |
| Eli Lilly and Company / Applied Molecular Evolution Inc. | 2003 | $400M | 88 |
| Eli Lilly and Company / ICOS Corporation | 2006 | $2.3B | 87 |
| Eli Lilly and Company / Novartis Animal Health | 2014 | $5.4B | 70 |
| Eli Lilly and Company / Incyte Corporation | 2009 | $755M | 69 |
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