Loxo Oncology acquisition
According to the agreement between the two companies, Eli Lilly will acquire Loxo for $235.00 per share in cash, which translates to ~$8.0 billion.
Largest acquisition by Lilly
A joint press release by the two companies said, “The acquisition would be the largest and latest in a series of transactions Lilly has conducted to broaden its cancer treatment efforts with externally sourced opportunities for first-in-class and best-in-class therapies.”
Commenting on the deal, Loxo Oncology’s CEO, Josh Bilenker, MD, said, “We are gratified that Lilly has recognized our contributions to the field of precision medicine and are excited to see our pipeline benefit from the resources and global reach of the Lilly organization.”
According to the agreement, “The transaction is not subject to any financing condition and is expected to close by the end of the first quarter of 2019, subject to customary closing conditions, including receipt of required regulatory approvals and the tender of a majority of the outstanding shares of Loxo Oncology’s common stock.”
The news seemed to make Loxo investors more than happy, as its stock surged 65.3% to $231.2 today in the premarket trading session.