Lilly acquisition of Loxo Oncology : US pharma giant Eli Lilly and Company (Lilly) has signed an all-cash deal worth $8 billion to acquire Loxo Oncology, a Connecticut-based biopharma company, as per the latest pharma acquisition news.
Lilly acquisition of Loxo Oncology
The acquisition of Loxo Oncology is expected to expand the scope of Lilly’s oncology portfolio into precision medicines thanks to the addition of a marketed therapy along with a pipeline of highly selective potential drugs for patients with genomically defined cancers.
Headquartered in Stamford, Loxo Oncology is developing targeted medicines for the treatment of cancers that are uniquely dependent on single gene abnormalities that can be detected by genomic testing.
According to Lilly, a targeted drug can potentially treat the condition of patients with cancers that harbor the genomic alterations.
The portfolio of approved and investigational drugs of Loxo Oncology includes LOXO-292, LOXO-305, LOXO-195 and Vitrakvi (larotrectinib).
LOXO-292 : An oral RET inhibitor, LOXO-292, which was granted the Breakthrough Therapy designation from the US FDA for three indications, is slated for an initial potential launch in 2020.
LOXO-305 : An oral BTK inhibitor, which is currently in phase 1/2 development, LOXO-305 targets cancers with alterations to the Bruton’s tyrosine kinase (BTK).
LOXO-195 : A follow-on TRK inhibitor, LOXO-195, which is being studied by Loxo Oncology alongside Bayer for acquired resistance to TRK inhibition, is targeting a launch in 2022.
Vitrakvi : Jointly developed and commercialized by Loxo Oncology and Bayer, Vitrakvi is an oral TRK inhibitor, which has been approved by the US FDA last November, for the treatment of solid tumors with neurotrophic receptor tyrosine kinase (NTRK) gene fusions in both adult and pediatric patients.
Commenting on Lilly acquisition of Loxo Oncology, Daniel Skovronsky – Lilly’s chief scientific officer and president of Lilly Research Laboratories, said: “Using tailored medicines to target key tumor dependencies offers an increasingly robust approach to cancer treatment.
“Loxo Oncology’s portfolio of RET, BTK and TRK inhibitors targeted specifically to patients with mutations or fusions in these genes, in combination with advanced diagnostics that allow us to know exactly which patients may benefit, creates new opportunities to improve the lives of people with advanced cancer.”
According to the terms of the Lilly acquisition of Loxo Oncology, the pharma giant will acquire 100% of the Connecticut-based oncology company at $235.00 per share.
Jacob Van Naarden – chief operating officer of Loxo Oncology, commenting on Lilly acquisition of Loxo Oncology, said: “We are excited to have reached this agreement with a team that shares our commitment to ensuring that emerging translational science reaches patients in need.
“We are confident that the work we have started, which includes an FDA approved drug, and a pipeline spanning from Phase 2 to discovery, will continue to thrive in Lilly’s hands.”
Lilly acquisition of Loxo Oncology is expected to be wrapped up by the end of Q1 2019, subject to meeting of customary closing conditions including regulatory approvals and approval of shareholders of Loxo Oncology.