Biopharmaceutical giant Eli Lilly has agreed to buy Loxo Oncology in a deal valued at US$8 billion.
Eli Lilly said it will pay US$235 a share in cash for Stamford, Connecticut-based Loxo. Loxo is expected to bolster Eli Lilly’s oncology-treatment portfolio. It also aims to treat patients that have cancer from single-gene abnormalities.
“We are gratified that Lilly has recognized our contributions to the field of precision medicine and are excited to see our pipeline benefit from the resources and global reach of the Lilly organization,” said Loxo CEO Josh Bilenker. “Tumor genomic profiling is becoming standard-of-care, and it will be critical to continue innovating against new targets, while anticipating mechanisms of resistance to available therapies, so that patients with advanced cancer have the chance to live longer and better lives.”
The acquisition is considered the largest and latest in a series of transactions Indianapolis-based Eli Lilly has conducted to expand its cancer treatment efforts. Last year, Eli Lilly purchased ARMO BioSciences for approximately US$1.6 billion. ARMO, like Loxo, is an immuno-oncology company dedicated to developing cancer medicines.
The Loxo transaction is expected to close by the end of the first quarter of 2019. It is still subject to customary closing conditions, including receipt of required regulatory approvals and the tender of a majority of the outstanding shares of Loxo Oncology’s common stock.
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