Centessa Pharmaceuticals PLC ADR

Nxera Pharma reported a net profit of JPY 1,591 million (US$10.1 million) for the six months ended 30 June 2026, reversing a net loss of JPY 3,137 million (US$21.1 million) in the prior corresponding period. Revenue totalled JPY 18,910 million (US$119.6 million), an increase of JPY 3,815 million (US$18.0 million) versus the prior corresponding period, driven by eight R&D milestone events in the current quarter compared with five a year earlier. Operating profit reached JPY 1,881 million (US$11.9 million) against an operating loss of JPY 2,756 million (US$18.5 million), while core operating profit surged to JPY 6,494 million (US$41.1 million) from JPY 364 million (US$2.5 million). The company highlighted progress across partnered programs, including milestone payments from Neurocrine Biosciences, AbbVie, and Centessa Pharmaceuticals, and noted that Lilly's acquisition of Centessa does not affect Nxera's rights to future milestone and royalty payments from the jointly created orexin receptor agonist pipeline.

CNBC's Jim Cramer declared biotech the hottest group in the market, citing a 51% return for the iShares Biotechnology ETF over the past year and a surge in dealmaking following a leadership change at the FDA. Cramer noted that the prior administration nearly blocked an Amgen acquisition, but with new FDA leadership, his sources expect deals to flood the market. Eli Lilly, a $1.16 trillion pharma giant, has already announced four acquisitions in the first quarter of 2026, including Orna Therapeutics, Centessa Pharmaceuticals, Kelonia Therapeutics, and Ajax Therapeutics, fueled by strong sales of Mounjaro and Zepbound. Cramer also highlighted Alnylam Pharmaceuticals as a prime takeover target, with its stock down 21% year-to-date despite 187% revenue growth and a surging TTR drug franchise. He advised investors to be long biotech, a call he has not made in ages.

Eli Lilly and Company has gained roughly 6% over the past 30 days, and the Street expects more than 13.6% upside from the current level. On June 25, Leerink analyst David Risinger raised the firm's price target on the stock from $1,119 to $1,232 while maintaining an Outperform rating, and on June 22, Berenberg analyst Kerry Holford raised the target to $1,135 from $1,050 with a Hold rating. The ratings reflect strong demand for metabolic treatments Mounjaro and Zepbound, as well as the June 24 completion of the acquisition of Centessa Pharmaceuticals, a clinical-stage company focused on orexin receptor 2 agonists for narcolepsy and other sleep-wake disorders, which signals Lilly's push into neuroscience and sleep medicine.

Eli Lilly completed its acquisition of Centessa Pharmaceuticals on June 24, aiming to advance the development of orexin receptor 2 agonists. This new class of medicine is designed to treat narcolepsy and other sleep-wake disorders by targeting the brain's natural systems for maintaining alertness and sleep stability. The company plans to urgently utilize Centessa's clinical portfolio to address the profound impacts of sleep disruption and explore the orexin system's broader potential for brain health. The acquisition aligns with Eli Lilly's focus on pioneering discoveries across diabetes, obesity, Alzheimer's, and immunology.

The High Court of Justice of England and Wales has approved Eli Lilly's proposed acquisition of Centessa Pharmaceuticals. The deal values Centessa at $38.00 per share in cash plus one non-transferable contingent value right entitling holders to up to $9.00 per share upon achievement of three milestones, for a total transaction value of approximately $7.8 billion. The court issued the order sanctioning the scheme of arrangement, and closing is expected on June 24, 2026, upon delivery of the order to the Registrar of Companies. Trading in Centessa American Depositary Shares on Nasdaq is expected to be halted before the opening on June 24, with the last trading day being June 23.

Biopharma executives' confidence in the industry has reached its highest point in four years, with 55% of surveyed professionals feeling optimistic or very optimistic about growth over the next 12 months, up from 46% in 2023, according to GlobalData's State of the Biopharmaceutical Industry 2026 mid-year update. The survey of 157 pharmaceutical professionals found that 69% of respondents highlighted US tariffs and government actions as the biggest policy concern, a figure that rose to 78% among European respondents. Deal activity has surged, with first-quarter 2026 M&A deal value rising 71% year over year and life sciences and pharma deals surpassing $65 billion, the strongest quarter since 2020. Notable transactions include Eli Lilly's acquisition of 10 companies this year, led by a $7.8 billion deal for Centessa, while the second quarter saw Sun Pharma's $11.75 billion takeover of Organon and GSK's $10.6 billion acquisition of Nuvalent. The IPO market has also resurged, with activity up 210%, and Parabilis Medicines set a new biotech IPO record with a $670 million Nasdaq listing just two months after Kailera Therapeutics raised $625 million.

PwC reports that US pharma and life sciences deal value surpassed $65 billion in the first quarter of 2026, the strongest quarter since pandemic-related highs in 2020. The surge is driven by the largest patent cliff in industry history, with more than $300 billion in branded pharma revenue exposed, forcing companies to pursue acquisitions in areas like GLP-1 receptor agonists, RNA therapeutics, and antibody-drug conjugates. Eli Lilly has been the most active buyer, purchasing 10 companies this year including a $7.8 billion deal for Centessa. The momentum continued into the second quarter with Sun Pharma's $11.75 billion takeover of Organon and GSK's $10.6 billion acquisition of Nuvalent. PwC expects M&A to remain strong through year-end as large-cap pharma fills loss-of-exclusivity gaps, while a resurgent IPO market saw Parabilis Medicines raise a record $670 million in the largest biotech IPO ever.