Key insights
- Eli Lilly is reportedly nearing a $2 billion acquisition of Kelonia Therapeutics, a biotech firm specializing in CAR-T therapy for multiple myeloma. This deal would bolster Lilly's oncology pipeline and presence in the blood cancer segment. The acquisition is fueled by Lilly's strong cash flow from its weight-loss and diabetes drugs, signaling continued dealmaking activity. The market impact is slightly positive, reflecting strategic growth.
Investing.com-- Eli Lilly (NYSE:LLY) is in advanced talks to acquire Kelonia Therapeutics for more than $2 billion, the Wall Street Journal reported on Sunday, citing people familiar with the matter.
A deal could be announced as soon as Monday, if negotiations do not fall apart, the report said, adding that the transaction may include additional milestone-based payments.
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Kelonia, a privately held biotech firm, is developing a next-generation treatment for multiple myeloma, a form of blood cancer. The company is focused on advancing a novel CAR-T therapy designed to reprogram a patient’s immune system to target cancer cells, but with a simplified approach that could avoid chemotherapy and complex cell-manufacturing processes.
According to the Journal, Kelonia has raised just under $60 million to date and was last valued at slightly above $100 million in 2022.
The acquisition would strengthen Eli Lilly’s presence in the fast-growing blood cancer segment and expand its oncology pipeline.
The report comes as Lilly continues an aggressive dealmaking push, backed by strong cash flows from its blockbuster weight-loss and diabetes drugs.