Cystic Fibrosis Foundation

The deal marks a continuation of a roll of M&A announcements for the Indianapolis drug giant.\n There\'s no question Eli Lilly has been the most active biopharma dealmaker of recent months, but even the billions the pharma already spent on acquisitions hasn\'t exhausted its appetite.The latest target is California-based Engage Biologics, for which Lilly is paying $202 million. That amount includes both an upfront fee and milestone payouts, although the companies didn\'t offer a breakdown of the financials.Based in San Carlos, Engage is developing non-viral DNA delivery systems that aim to overcome traditional limitations associated with the modality. The preclinical company counts SciFounders, Pioneer Fund, Cal Innovation Fund, Y Combinator and the Cystic Fibrosis Foundation as seed founders. It\'s also received funding from the Gates Foundation and the National Center for Advancing Translational Sciences, part of the National Institutes of Health.With its Tethosome platform, Engage aims to overcome potency, tolerability and redosability challenges of DNA delivery. The platform leverages engineered DNA payloads with lipid nanoparticle delivery and mRNA-encoded tech in an effort to \"enhance localization and increase expression,\" according to the release.\"We are excited to begin our next chapter with Lilly, which has demonstrated unmatched speed and a uniquely forward-thinking approach to genetic medicine,\" Engage CEO Will Olsen said in a statement. \"We believe that the combination of Engage’s platform with Lilly’s significant capabilities will meaningfully accelerate development of new genetic therapies.\"As for Lilly, the Engage buyout marks a continuation of a busy spring of dealmaking. Last month, the pharma giant unveiled its $2.3 billion purchase of Ajax, a New York biotech with a clinical-stage myelofibrosis therapy. Before that, Lilly made a splash with its $3.2 billion upfront buyout of in vivo CAR-T company Kelonia Therapeutics, among other recent acquisitions.The steady stream of M&A deals outlines a core strategy playing out at the company: Late last year, a Lilly exec told Fierce the pharma wanted to use its GLP-1 windfall to become a \"backbone of the overall innovation ecosystem all around the world.\"

SAN CARLOS, Calif.--(BUSINESS WIRE)--Engage Biologics Inc. (“Engage”), a preclinical biotechnology company pioneering non-viral DNA delivery, today announced that it has been acquired by Eli Lilly and Company (“Lilly”). Engage is developing the Tethosome platform, a novel non-viral DNA delivery system designed to overcome key limitations in DNA delivery, including potency, tolerability, and redosability. The platform combines engineered DNA payloads with lipid nanoparticle delivery and an mRNA-encoded proprietary Tethosome technology designed to enhance localization and increase expression. Engage’s DNA payloads are further engineered to improve tolerability while retaining key advantages of DNA-based therapies, including durability and programmability “With a lean organization and modest seed funding, I am incredibly proud of the rapid progress Engage has made toward a new class of genetic medicines. This is a testament to what a nimble, passionate team can achieve with the tools of synthetic biology,” said Will Olsen, Co-Founder and CEO of Engage. “We are excited to begin our next chapter with Lilly, which has demonstrated unmatched speed and a uniquely forward-thinking approach to genetic medicine. We believe that the combination of Engage’s platform with Lilly’s significant capabilities will meaningfully accelerate development of new genetic therapies.” Under the terms of the agreement, Lilly acquired Engage for up to $202 million in cash, including an upfront payment and subsequent payments upon achievement of specified development milestones. Cooley LLP served as legal counsel to Engage. About Engage Bio Engage Bio is a San Carlos, California-based startup founded in 2021 that is advancing novel non-viral DNA delivery systems. The company’s mission is to solve the two key limitations, nuclear localization and innate immune sensing, that have held back the field of non-viral DNA to date. Engage is supported by seed investors including SciFounders, Pioneer Fund, Cal Innovation Fund, Y Combinator, and the Cystic Fibrosis Foundation, and has received non-dilutive funding from the Gates Foundation and NIH-NCATS.

Eli Lilly has acquired San Carlos, California-based Engage Biologics Inc. for up to USD 202 million in cash, adding the company’s Tethosome non-viral DNA delivery platform to its genetic medicines portfolio. The Indianapolis-based pharmaceutical company structured the deal as an upfront cash payment plus contingent payments tied to specified development milestones, though the breakdown between the two components was not disclosed. Engage Bio, founded in 2021 and backed by seed investors including Y Combinator and the Cystic Fibrosis Foundation, as well as non-dilutive funding from the Gates Foundation and NIH-NCATS, remained at the preclinical stage at the time of acquisition. The Tethosome platform combines engineered DNA payloads with lipid nanoparticle delivery and a proprietary mRNA-encoded technology designed to improve nuclear localization and increase gene expression. The company described the system as addressing two core barriers that have constrained non-viral DNA delivery: nuclear localization and innate immune sensing. DNA payloads are further engineered to reduce immunogenicity while retaining the durability and programmability associated with DNA-based approaches. No specific lead asset, internal program code, or clinical trial was disclosed as central to the transaction. The acquisition was framed at the platform level, with Lilly citing the potential to integrate Tethosome’s capabilities with its existing genetic medicine infrastructure. Financial terms beyond the USD 202 million ceiling were not disclosed, and no royalty provisions, equity components, or commercial milestones were described in the announcement. Geographic rights were not separately specified; as a full company acquisition, Lilly would be expected to hold global rights to all of Engage’s intellectual property and pipeline assets. The deal represents Lilly’s second platform-level acquisition in the non-viral genetic medicines space within a four-month period. In February 2026, Lilly acquired Orna Therapeutics for up to USD 2.4 billion, adding an engineered circular RNA platform paired with lipid nanoparticle delivery focused on in vivo cell engineering. The value differential between the two deals — USD 202 million for Engage versus USD 2.4 billion for Orna — is consistent with Engage’s seed-stage status and lean organizational profile at the time of closing. Taken together, the two acquisitions indicate a deliberate effort by Lilly to build redundant and complementary non-viral delivery capabilities across both RNA and DNA modalities. AstraZeneca made a comparable move in March 2025, acquiring EsoBiotec for up to USD 1 billion to access a non-viral RNA-based platform for in vivo CAR-T cell engineering, reflecting broader large-pharma appetite for early-stage non-viral delivery technology. For Lilly, the Engage acquisition extends a genetic medicine strategy that now spans circular RNA, DNA delivery, and lipid nanoparticle engineering at the preclinical level. The relatively modest deal ceiling suggests Lilly is acquiring platform optionality at an early stage rather than paying for de-risked clinical assets, a structure that limits near-term financial exposure while preserving access to the technology if development milestones are met. This article was generated with AI assistance and reviewed and edited by the AllSci editorial team Explore more at AllSci News: https://allsci.com/news/ Your email address will not be published. Required fields are marked * Comment * Name * Email * Website Privacy Terms About Us Copyright © 2026. AllSci Corp. All rights reserved.