Eli Lilly and Company announced it will acquire three vaccine development companies for nearly $4 billion, marking a significant expansion into infectious disease prevention for the pharmaceutical giant known for its weight-loss medications.

The acquisition deal is valued at up to $3.8 billion according to some reports, while others cite the figure as nearly $4 billion. The transaction represents Lilly's strategic push to diversify its portfolio beyond its current focus areas and establish a stronger presence in vaccine development and infectious disease treatment.

Lilly's stock price edged higher following the announcement, as investors responded positively to the company's expansion strategy. The acquisitions come as the pharmaceutical industry continues to prioritize infectious disease capabilities following lessons learned during the COVID-19 pandemic.

The move signals Lilly's intention to leverage its financial strength from successful products in other therapeutic areas, including its popular weight-loss drugs, to build capabilities in vaccine development. The company is positioning itself to compete more directly with established vaccine manufacturers in the infectious disease prevention market.

Specific details about the three target companies and the timeline for completing the acquisitions were not immediately disclosed in the initial announcements. The deals are expected to undergo standard regulatory review processes before finalization.