Lilly to acquire Loxo Oncology for 8 billion dollar
- by Team ABLE - 08 Jan, 2019
Eli Lilly and CompanyandNASDAQ-listed Loxo Oncology have announced a definitive agreement for Lilly to acquireLoxo Oncologyfor$235.00per share in cash, or approximately$8.0 billion.
Loxo Oncologyis a biopharmaceutical company focused on the development and commercialization of highly selective medicines for patients with genomically defined cancers.
Loxo Oncologyis developing a pipeline of targeted medicines focused on cancers that are uniquely dependent on single gene abnormalities that can be detected by genomic testing.For patients with cancers that harbor these genomic alterations, a targeted medicine could have the potential to treat the cancer with dramatic effect.
“Using tailored medicines to target key tumor dependencies offers an increasingly robust approach to cancer treatment,” saidDaniel Skovronsky, Lilly's chief scientific officer and president ofLilly Research Laboratories. “Loxo Oncology's portfolio of RET, BTK and TRK inhibitors targeted specifically to patients with mutations or fusions in these genes, 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.”
Under the terms of the agreement, Lilly will commence a tender offer to acquire all outstanding shares ofLoxo Oncologyfor a purchase price of$235.00per share in cash, or approximately$8.0 billion. The transaction is not subject to any financing condition and is expected to close by the end of the first quarter of 2019, subject to customary closing conditions, including receipt of required regulatory approvals and the tender of a majority of the outstanding shares ofLoxo Oncology'scommon stock. Following the successful closing of the tender offer, Lilly will acquire any shares ofLoxo Oncology that are not tendered into the tender offer through a second-step merger at the tender offer price.
The acquisition would be the largest and latest in a series of transactions Lilly has conducted to broaden its cancer treatment efforts with externally sourced opportunities for first-in-class and best-in-class therapies.