Eli Lilly completes $8bn acquisition of Loxo Oncology to expand oncology portfolio

Eli Lilly and Company, the US-based pharmaceutical giant, has finalised its $8 billion acquisition of Connecticut-based biopharmaceutical firm Loxo Oncology, a move expected to significantly enhance its oncology portfolio. The deal, initially announced in January 2019, marks a pivotal step in Lilly’s strategy to focus on precision medicines tailored for cancers driven by specific gene abnormalities. This acquisition brings not only a marketed therapy but also a promising pipeline of highly selective drugs designed to target genomically defined cancers.

Anne White, the President of Lilly Oncology, expressed her enthusiasm about the deal, stating that the acquisition will allow the company to broaden its oncology offerings by targeting cancers caused by particular gene mutations. She highlighted the importance of this scientific innovation and the potential to improve the lives of cancer patients. White noted, “We are pleased to announce the completion of our acquisition of Loxo Oncology, which will expand the breadth of our portfolio into precision medicines and target cancers that are caused by specific gene abnormalities.”

Loxo Oncology, headquartered in Stamford, Connecticut, specialises in developing targeted therapies aimed at cancers reliant on specific gene mutations detectable through genomic testing. Lilly has emphasized that these targeted treatments have the potential to offer effective solutions for patients with cancers that exhibit such genomic alterations.

The deal was concluded with Lilly purchasing all outstanding shares of Loxo Oncology at $235 per share in cash, marking a significant financial commitment. Josh Bilenker, CEO of Loxo Oncology, expressed optimism about the future of the company under Lilly’s ownership. He stated, “The Loxo Oncology team has always been relentless and unified around the common goal of bringing highly selective medicines to patients with genomically defined cancers. With the acquisition now complete, we look forward to realizing the full value of our pipeline with the ongoing support of our teams in Connecticut, Colorado, and California.”

As part of the acquisition, Lilly gains access to several investigational drugs from Loxo’s pipeline, including LOXO-292 and LOXO-305. LOXO-292, an oral RET inhibitor, has already received Breakthrough Therapy designation from the US FDA for three indications and is expected to be launched in 2020. Meanwhile, LOXO-305, an oral BTK inhibitor, is currently in phase 1/2 development and is designed to target cancers with specific Bruton’s tyrosine kinase (BTK) alterations.

Additionally, the acquisition involves the transfer of global development rights for two of Loxo’s drugs, Vitrakvi (larotrectinib) and LOXO-195, to Bayer. This transaction followed Bayer’s exercise of its option under a change-in-control clause in its 2017 co-development agreement with Loxo. Vitrakvi and BAY 2731954 are both targeted therapies designed to treat advanced solid tumors in patients with NTRK gene fusions.