Health tech company Eli Lilly (LLY) said it will acquire autoimmune drug developer Ventyx Biosciences (VTYX) for $1.2 billion in cash, expanding its research pipeline beyond its fast-growing diabetes and weight-loss medicines.

The deal marks the first major transaction for Lilly in 2026, following a year in which the company’s market value surpassed $1 trillion.

Lilly said it will buy all outstanding shares of Ventyx for $14 per share. The offer represents a premium of about 2% to Ventyx’s closing price on Wednesday.

Ventyx is developing several treatments, including oral therapies for inflammatory bowel diseases such as Crohn’s disease and ulcerative colitis. Its pipeline also includes drug candidates for immune-related, cardiometabolic and neurodegenerative disorders.

One of Ventyx’s drug candidates is in a mid-stage trial targeting a cardiovascular condition linked to obesity. Lilly said the program could complement its existing metabolic and immunology research efforts.

The acquisition comes as Lilly seeks to diversify its business beyond its blockbuster diabetes and obesity medicines. Those products have driven rapid sales growth and reshaped the company’s revenue base.

Lilly’s diabetes and weight-loss drugs have generated annual revenue that exceeds traditional pharmaceutical blockbusters. The success has helped cement Lilly’s position as the world’s most valuable drugmaker.

Ventyx is based in San Diego, California. Lilly said the transaction is expected to close in the first half of 2026, subject to customary closing conditions.

The companies did not disclose any changes to Ventyx’s operations or staffing following the acquisition.

Eli Lilly and Co said the purchase would add multiple early- and mid-stage programs to its development pipeline.

Ventyx Biosciences Inc focuses on developing oral therapies aimed at chronic inflammatory and immune-mediated diseases.

The acquisition underscores Lilly’s continued investment in research areas adjacent to metabolic disease as it looks to sustain long-term growth.