Eli Lilly: buys Loxo in latest cancer move

(CercleFinance.com) - US drugmaker Eli Lilly will buy Loxo Oncology for 8 billion dollars, in the latest round of the wave of mergers and acquisitions (M&A) that is currently shaking the hot biotechnology market.


Under the terms of the agreement, Lilly will initiate a tender offer to acquire all of Loxo's shares at a price of 235 dollars each in cash, representing a premium of 68% to Loxo's closing stock price on 4 January.

The acquisition would be the largest in a series of transactions that Lilly has conducted to broaden its cancer treatment efforts.

Loxo Oncology is developing a pipeline of targeted drugs for patients with genomically defined cancers.

The move comes after Bristol-Myers bought Celgene for 74 billion dollars and GSK acquired cancer firm Tesaro for an expensive 5.1 billion dollars.

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