Timothy Springer, a professor of biological chemistry and molecular pharmacology at Harvard University, became $200 million richer on Monday after Eli Lilly announced it was acquiring a biotech company he founded. News of the deal added to Springer’s already billion dollar net worth.
Eli Lilly announced that it is acquiring Morphic for about $3.2 billion. The Massachusetts-based drug maker, founded by Springer in 2014, is developing oral therapies that target ulcerative colitis and Crohn’s disease, collectively known as inflammatory bowel disease. The company is also developing drugs for the treatment of other autoimmune diseases, pulmonary hypertensive diseases, fibrotic diseases and cancer.
As part of the deal, which is expected to close in the third quarter of 2024, Eli Lilly has agreed to buy all outstanding shares of Morphic for a purchase price of $57 per share in cash — a 79% premium on the stock’s closing price on Friday.
The deal includes Morphic’s leading drug candidate MORF-057. The treatment is currently in separate phase 2 clinical trials testing its effectiveness at treating ulcerative colitis and Crohn’s disease.
Following the deal’s announcement, Morphic stock soared 75% during Monday morning trading adding about $200 million to Springer’s net worth, which Forbes estimates to be at $2 billion.
Springer, who owns about 16% of Morphic stock, is also set to receive about $435 million when the deal closes, according to Forbes.
Although Springer has founded other biotech companies, his large fortune comes primarily from Moderna, the maker of mRNA-based COVID-19 vaccines.
Springer was a founding investor in Moderna in 2010. His initial $5 million investment now represents a 3% stake in the company worth about $1.4 billion, according to Forbes.