Eli Lilly strengthens oncology portfolio through $8bn acquisition

In an effort to strengthen its cancer treatment portfolio, major pharma company Eli Lilly has announced it is to acquire the biopharmaceutical company Loxo Oncology for $8 billion.

Loxo Oncology has a promising selection of approved and investigational medicines and is currently developing medicines that focus on cancers that can be detected by genomic testing. Cancers that depend on single gene abnormalities could be treat by targeted medicines.

"Lilly Oncology is committed to developing innovative, breakthrough medicines that will make a meaningful difference for people with cancer and help them live longer, healthier lives," said Anne White, president of Lilly Oncology. "The acquisition of Loxo Oncology represents an exciting and immediate opportunity to expand the breadth of our portfolio into precision medicines and target cancers that are caused by specific gene abnormalities. The ability to target tumour dependencies in these populations is a key part of our Lilly Oncology strategy. We look forward to continuing to advance the pioneering scientific innovation begun by Loxo Oncology."

Loxo Oncology’s portfolio consists of a number of promising cancer therapies, including Loxo-292, a drug which targets cancers with alterations to the rearranged during transfection (RET) kinase. Loxo-292, which could be used across certain lung and thyroid cancers, is scheduled with a potential launch in 2020.

Also in the company’s portfolio is Loxo-305, an oral BTK inhibitor which targets cancers with alterations to the Bruton's tyrosine kinase (BTK), and is designed to address acquired resistance to currently available BTK inhibitors.

"We are gratified that Lilly has recognised 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 organisation," said Josh Bilenker, chief executive officer of Loxo Oncology. "Tumour genomic profiling is becoming standard-of-care, and it will be critical to continue innovating against new targets, while anticipating mechanisms of resistance to available therapies, so that patients with advanced cancer have the chance to live longer and better lives."

The transaction of the deal is expected to close by the end of the first quarter of 2019.