US drug giant Eli Lilly shows no signs of slowing down in the mergers and acquisitions market. Despite spending billions on acquisitions in recent months, it remains the most active player in biopharmaceutical M&A. Its new target is California-based preclinical biotech Engage Biologics, which is developing a novel DNA delivery system. Details of the deal have not been disclosed, but Eli Lilly will pay up to $202 million for the company, including an upfront payment and milestone payments.
Engage Biologics, based in San Carlos, is developing non-viral DNA delivery systems at the preclinical stage. Its early investors include SciFounders, Pioneer Fund, Cal Innovation Fund, Y Combinator and the Cystic Fibrosis Foundation. The company has also received funding from the Bill & Melinda Gates Foundation and the National Center for Advancing Translational Sciences (a division of the NIH).
The acquisition will allow Eli Lilly to strengthen its genetic medicines portfolio with Engage Bio’s non-viral DNA delivery platform, Tethosome. The platform combines engineered DNA constructs, lipid nanoparticles and mRNA technology to improve localisation and enhance expression, addressing challenges of efficacy, tolerability and redosing.
Engage chief executive Will Olsen said: “We believe that combining our platform with Lilly’s extensive capabilities will significantly accelerate the development of new genetic therapies.”
For Eli Lilly, the deal continues a string of M&A announcements. Last month, the drug giant announced the acquisition of Ajax for 2.3billion, which is developing a clinical therapy for myelofibrosis. Before that, it struck a deal to buy Kelonia Therapeutics, which is working on invivo CAR-T therapies, paying 2.3 billion, which is developing a clinical therapy for myelofibrosis. Before that, it struck deal to buy Kelonia Therapeutics, which is working on invivo CAR-T therapies, paying 3.2 billion upfront.
The steady stream of deals reflects the company’s key strategy. At the end of 2025, Eli Lilly said it intended to use its GLP-1 drug windfall to become “the backbone of the entire innovation ecosystem worldwide.”