Just a week after Bristol-Myers Squibb acquired Celgene in a $74bn cancer push, it is now reported that US-based Eli Lilly is spending about $8bn in cash to buy Loxo Oncology, as the drugmaker bulks up on cancer treatments.
Last year, US regulators had approved Loxo’s commercial medicine Vitrakvi, which was shown to be effective against a wide variety of cancers driven by a single, rare genetic mutation. The drug is sold in partnership with Bayer.
Lilly, known for insulins like Humalog, has emphasized oncology growth over the past several years, and one of its top-selling products is the cancer treatment Alimta.
Eli Lilly will pay $235 for each share of Stamford, Connecticut-based Loxo. That’s a 68 percent premium to the company’s Friday closing price of $139.87.
The deal is expected to close by the end of the first quarter.