Eli Lilly and Company (NYSE: LLY) is in advanced talks to acquire Ventyx Biosciences (NYSE: VTYX) in a transaction valued at more than $1 billion, according to a report by The Wall Street Journal citing people familiar with the matter.

The deal could be announced as soon as the coming days, the report said. Neither company has confirmed the discussions. Eli Lilly told Reuters that it does not comment on business development activity, while Ventyx did not immediately respond to requests for comment. Shares of Ventyx surged more than 50% in extended trading following the report, reflecting investor optimism around a potential acquisition.

Ventyx Biosciences develops therapies targeting immunological and inflammatory diseases. Its pipeline includes experimental treatments for inflammatory bowel diseases such as Crohn’s disease and ulcerative colitis, as well as programs focused on Parkinson’s disease and cardiovascular conditions linked to obesity. One of the company’s candidates is currently in mid-stage clinical development for an obesity-related heart condition.

A transaction would align with Eli Lilly’s broader strategy to diversify beyond its core diabetes and obesity franchises and expand its presence in immunology and neuroscience. Analysts have noted that Lilly has been increasingly active in pursuing external innovation to supplement its internal research efforts. The sharp rise in Ventyx’s share price following the report underscores expectations that a deal could be announced imminently, though sources cautioned that talks could still fall apart.

If completed, the acquisition would add a range of early- and mid-stage assets to Lilly’s research pipeline, potentially strengthening its long-term growth prospects in therapeutic areas outside its traditional focus.

About Eli Lilly and Company

Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company headquartered in Indianapolis, Indiana. Founded in 1876, the company develops medicines across multiple therapeutic areas, including diabetes, oncology, immunology, neuroscience, and cardiovascular disease, with a focus on advancing innovative treatments for serious health conditions.

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.