Lilly to shell out billions of dollars to acquire Loxo Oncology

7 January 2019

US pharma major Eli Lilly (NYSE: LLY) today announced the second multi-billion dollar acquisition of the New Year, saying it had reached a definitive agreement to acquire Loxo Oncology (Nasdaq: LOXO), with the news sending the latter’s shares up about 63.8% at $229 in pre-market trading today. Lilly was down 2.67% at $111.60 pre-market.

Lilly is offering $235.00 per share in cash, which represents a premium of about 68% to Loxo’s Friday close, or around $8.0 billion. Loxo Oncology is a biopharmaceutical company focused on the development and commercialization of highly selective medicines for patients with genomically defined cancers.

Just last week, Bristol-Myers Squibb (NYSE: BMY) kicked off the MA& season with a $74 billion bid for Celgene (Nasdaq: CELG).

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