Categories Health Care, Markets

In a massive deal, Eli Lilly acquires Loxo Oncology

Eli Lilly and Company (LLY) on Monday announced that it would acquire a small biopharmaceutical startup that develops cancer treatment, Loxo Oncology (LOXO), for $8 billion, in its largest and latest in a series of transactions to broaden its own portfolio of oncology drugs.

The deal, valued at $235 per share comes at a hefty 68% premium over Loxo’s Friday close. Both the stocks were buoyed by the announced, with Loxo shares opening up 6.7% and Eli Lilly jumping 3.1% on Monday.

Eli Lilly acquires Loxo Oncology
Photo by rawpixel on Unsplash (Image for representation)

The transaction is expected to close in the first quarter of this year.

It may be noted that the company’s experimental cancer drugs have shown very high success rates, and one, Vitrakvi, has currently reached the market. Thanks to the positive results, the stock has gained over 970% since its IPO in 2014.

Lilly’s chief scientific officer Daniel Skovronsky said, “Using tailored medicines to target key tumor dependencies offers an increasingly robust approach to cancer treatment. Loxo Oncology’s portfolio, in combination with advanced diagnostics that allow us to know exactly which patients may benefit, creates new opportunities to improve the lives of people with advanced cancer.”

Lilly said the transaction will reflect in its GAAP financial results, and that it will provide updated guidance along with the fourth quarter results on February 13.

Eli Lilly tops market estimates; revises guidance

This acquisition comes on the heels of Bristol-Myers Squibb (BMY) acquiring its peer Celgene (CELG) in a $74 billion cash and stock transaction.

 

Follow our Google News edition to get the latest stock market, earnings, and financial news at your fingertips 

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top