Investing.com -- Centessa Pharmaceuticals (NASDAQ; CNTA) has surged more than 46% premarket on Tuesday after Eli Lilly announced a definitive agreement to acquire the clinical-stage biotech in a deal valued at up to $7.8 billion, including contingent payments.

Lilly will pay $38 per share in cash, an upfront value of roughly $6.3 billion, alongside a non-transferable contingent value right worth up to an additional $9 per share if future regulatory milestones are met.

The company said the offer represents a 40.5% premium to Centessa’s 30-day volume-weighted average price.

The acquisition gives Lilly ownership of Centessa’s orexin receptor 2 (OX2R) agonist pipeline, including cleminorexton, described as a “potential best-in-class therapeutic” for sleep-wake disorders such as narcolepsy types 1 and 2 and idiopathic hypersomnia.

The portfolio also includes several earlier-stage candidates with potential across broader neurological and neuropsychiatric conditions.

Carole Ho, president of Lilly Neuroscience, said “orexin receptor biology represents one of the most compelling mechanistic opportunities in neuroscience” and argued that combining teams would allow Lilly to pursue Centessa’s pipeline “at the speed and scale it deserves.”

Centessa CEO Mario Alberto Accardi stated that the company is “at the forefront of orexin science,” adding that the portfolio “could help redefine what’s possible in neuroscience.”

He believes joining Lilly will “accelerate the advancement of our orexin portfolio across a broad range of neuroscience indications.”

The deal is expected to close in the third quarter.