Eli Lilly said he plans to buy Loxo Oncology for the stunning $ 8 billion. With this deal, the company will expand its biopharmaceutical horizon, adding to its portfolio the oncology company. This will allow Eli Lilly to get into the development of medications for cancer treatment.
Lilly, who are based in Indianapolis, will pay $ 235 per share. The $ 8 billion valuation for the deal includes exclusive Loxo shares as well as share options. Loxo, based in Stamford, are developing drugs that prevent the development of abnormal genetic changes in cancer-treated patients.
The field of cancer treatments has recently become a hot topic. Last week, Bristol - Myers Squibb said they would buy Celgene Copr for $ 74 billion. Both companies sell drugs and medicines to treat cancer.
Eli Lilly recently completed another cancer-related deal. The company closed a $ 1.6 billion deal by purchasing Armo Bioscience, which develops immune-therapeutic drugs.
The cancer drug market is one of the biggest in the pharmaceutical business and is worth $ 123 billion - globally.
Eli Lilly is expected to complete the deal with Loxo at the end of the first quarter of 2019. Loxo's shares rose 65% and Eli Lilly fell 2.9% in the pre-market, but then rose to $ 115 in the late US session.
Source: The Wall Street Journal
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