Lilly makes $8 billion bet on drugs for rare cancers with Loxo Oncology buy
Source: www.investing.com
Eli Lilly has announced it will acquire Loxo Oncology for $235 per share in cash totaling $8 billion. Loxo Oncology is a biopharmaceutical company focused on the development and commercialization of highly selective medicines for patients with genomically defined cancers. This costly investment is a strategic attempt by Eli Lilly to grow its oncology portfolio through the acquisition of Loxo’s pipeline of cancer drugs that target rare genetic mutations. The transaction is expected to close by the end of the first quarter of 2019, subject to regulatory approvals. Post announcement Loxo’s shares surged 66% to close at $232.6, while Eli Lilly was marginally up by 0.5% to close at $115.3.
