Lilly to acquire Loxo Oncology in $8bn deal: A game-changer in precision cancer treatment

Eli Lilly and Company (Lilly), a global leader in pharmaceuticals, has made headlines with its announcement to acquire Loxo Oncology, a pioneering biopharmaceutical company based in Stamford, Connecticut. The all-cash deal, valued at $8 billion, is poised to significantly enhance Lilly’s oncology portfolio by integrating Loxo Oncology’s cutting-edge precision medicines.

A strategic move in oncology

The acquisition is expected to expand Lilly’s capabilities in oncology, particularly in precision medicine, by adding a portfolio of highly selective drugs designed to treat cancers that are genetically defined. Loxo Oncology’s innovative approach targets cancers that depend on specific genetic mutations, offering new therapeutic options for patients. The company’s marketed therapy, along with its promising pipeline of drugs, will enable Lilly to address a broader range of cancer types with a more personalized approach.

Loxo Oncology’s expertise lies in developing targeted medicines for cancers that have single gene abnormalities detectable through genomic testing. Lilly believes that such treatments, tailored to the unique genetic profiles of patients’ cancers, could drastically improve outcomes for those suffering from genomically defined cancers.

Loxo’s impressive portfolio of cancer therapies

Loxo Oncology’s array of approved and investigational drugs includes a series of groundbreaking therapies aimed at treating specific genetic mutations. These include:

• LOXO-292: An oral RET inhibitor that received Breakthrough Therapy designation from the US FDA for three indications. This drug is expected to be launched initially in 2020.
• LOXO-305: An oral BTK inhibitor currently in phase 1/2 development, targeting cancers with alterations to Bruton’s tyrosine kinase (BTK).
• LOXO-195: A follow-on TRK inhibitor designed to address acquired resistance to TRK inhibition, in collaboration with Bayer. It is anticipated to launch in 2022.
• Vitrakvi (larotrectinib): Jointly developed and commercialized by Loxo Oncology and Bayer, this oral TRK inhibitor was approved by the US FDA in November for the treatment of solid tumors with neurotrophic receptor tyrosine kinase (NTRK) gene fusions in both adult and pediatric patients.

Lilly’s vision for the future of cancer treatment

Daniel Skovronsky, Chief Scientific Officer and President of Lilly Research Laboratories, emphasized the potential of using precision therapies to address key tumor dependencies. He highlighted that Loxo Oncology’s portfolio of RET, BTK, and TRK inhibitors, when combined with advanced diagnostics, could create new avenues for improving the lives of patients with advanced cancers. According to Skovronsky, “Using tailored medicines to target key tumor dependencies offers an increasingly robust approach to cancer treatment.”

Jacob Van Naarden, Chief Operating Officer of Loxo Oncology, expressed confidence in the acquisition, noting the shared commitment to advancing translational science and ensuring that these innovative therapies reach patients who need them most. He also praised Lilly for its ability to continue Loxo Oncology’s work, including the further development of its FDA-approved drug and its diverse pipeline.

The terms of the deal and timeline

Under the terms of the acquisition, Lilly will purchase 100% of Loxo Oncology for $235.00 per share. This transaction is expected to be completed by the end of Q1 2019, subject to customary closing conditions, including regulatory approvals and the approval of Loxo Oncology’s shareholders.

This acquisition represents a monumental step for Lilly in its ongoing mission to revolutionize cancer treatment through the development of targeted, genomically-driven therapies. By adding Loxo Oncology’s innovative pipeline to its portfolio, Lilly is positioning itself at the forefront of precision medicine, with the potential to offer transformative treatments for cancer patients worldwide.