Eli Lilly to buy Loxo Oncology for $8 billion

Loxo Oncology, a Stamford-headquartered biopharmaceutical company focused on creating medicines to combat genomically defined cancers, is to be acquired by Eli Lilly and Co. for $235 per share in cash, or approximately $8 billion.

The acquisition is not subject to any financing condition and is expected to close by the end of the first quarter.

In late November, Loxo Oncology received approval from the U.S. Food and Drug Administration for its cancer drug Vitrakvi, also known as larotrectinib. The FDA previously granted Vitrakvi breakthrough therapy designation, rare pediatric disease designation and orphan drug designation. The new approval enabled Loxo Oncology and its development partner Bayer to sell the drug in oral capsules and as a liquid formulation for adults and children.

The company has also developed LOXO-292, which has been granted breakthrough therapy designation by the FDA for three indications, with an initial potential launch in 2020.

“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 Josh Bilenker, CEO of Loxo Oncology. “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.”