Eli Lilly And Co. (NYSE:LLY) is about to seal a deal considered to be as one of the largest acquisitions. The pharma giant is making plans to purchase Loxo Oncology Inc. (NASDAQ:LOXO), a deal which will cost $8 billion payable in cash. Lilly’s CEO David Ricks said that the buyout would enable expand their presence in oncology. It will also act as a platform for enhancing drugs for patients suffering from genomically defined cancers.
Lilly already has a good set of medicines, and so is Loxo. Also, the latter uses a genetically – based methodology to treat cancer. Loxo’s leading treatment, LOXO-292, has received a Breakthrough Therapy designation from the US Food and Drug Administration (FDA). The company also has larotrectinib (Vitrakvi), which has demonstrated a good trend in the treatment of lung, colon, breast, and thyroid cancers.
Lilly’s rise in the cancer drug space is a little shocking
It is not a secret that Cancer is one of the most dreadful diseases in the world today. There has been very little focus on the oncology. Seemingly, chemotherapy Alimta considered a valuable drug has in the recent past lost patent protection in several countries.
However, Lilly’s active participation in the cancer drug space has caught many by surprise. According to Stifel analyst Stephen Willey, no one would have thought that the biotech would put in such an investment to an acquisition.
Nonetheless, Anne White, the president of Lilly Oncology outlines, “We believe that Lilly will bring a great deal of strength to this partnership in addition to what Loxo has already done.”
There seem to be bigger things coming as the year rolls out
The last time Lilly made an acquisition was in 2015. This is according to financial filings. Ricks did confirm that it is bigger than any other they have done before. The move speaks in volumes of what is likely to come as the year rolls out. Notably, this is the second deal this year. Meanwhile, Lilly has confirmed that it will continue seeking opportunities; thus the world should expect to see much more.