Key insights
- Eli Lilly is acquiring Ajax Therapeutics for up to $2.3 billion, reinforcing its position in pharmaceuticals. Ajax's lead drug, a Type II JAK2 inhibitor, is in Phase 1 trials. Lilly anticipates clinical data in 2026. While the deal itself has a limited impact, it signals Lilly's continued investment in oncology and innovation, which could positively influence investor sentiment.
INDIANAPOLIS - Eli Lilly and Company (NYSE:LLY) announced today a definitive agreement to acquire Ajax Therapeutics, a biopharmaceutical company developing JAK inhibitors for myeloproliferative neoplasms. The acquisition reinforces Lilly’s position as a prominent player in the pharmaceuticals industry, with the company currently commanding a market capitalization of $791 billion.
Under the terms of the agreement, Ajax shareholders could receive up to $2.3 billion in cash, including an upfront payment and milestone payments tied to clinical and regulatory achievements, according to a press release statement. The deal comes as Lilly trades below its InvestingPro Fair Value, suggesting the stock may be undervalued despite the company’s robust 45% revenue growth over the last twelve months.
Ajax’s lead program, AJ1-11095, is a Type II JAK2 inhibitor currently in Phase 1 clinical development. The once-daily oral drug is being evaluated in the AJX-101 trial in myelofibrosis patients previously treated with a Type I JAK2 inhibitor. The Phase 1 trial began in late 2024, with dose selection for future development expected in 2026. First proof-of-concept clinical data will be presented later in 2026.
All approved JAK2 inhibitors for myeloproliferative neoplasms bind the Type I confirmation of JAK2. AJ1-11095 was designed as a selective Type II JAK2 inhibitor to provide an alternative for patients who become resistant to Type I JAK2 inhibitors.
"As a founding strategic investor in Ajax, Lilly has long believed in the approach," said Jacob Van Naarden, executive vice president and president of Lilly Oncology. "We look forward to the presentation of clinical proof-of-concept data later in 2026, rapidly advancing AJ1-11095 into registrational clinical trials."For deeper insights into Lilly’s financial health and strategic positioning, investors can access comprehensive Pro Research Reports available on InvestingPro, covering this and 1,400+ other US equities.
The transaction is subject to customary closing conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Ropes Gray LLP is acting as legal counsel for Lilly. Cooley LLP is acting as legal counsel for Ajax, with additional legal advice from Kirkland & Ellis LLP.
In other recent news, Eli Lilly has seen significant developments surrounding its diabetes and weight-loss medications. Morgan Stanley provided commentary on the prescription data for Mounjaro and Zepbound, noting a slight increase in prescriptions for both drugs in the week of April 17, 2026, compared to the previous week. Despite this, Eli Lilly’s stock experienced a decline. Additionally, Bernstein SocGen reiterated an Outperform rating for Eli Lilly, with expectations for the company to exceed first-quarter forecasts and potentially raise its full-year guidance.
Morgan Stanley also reiterated an Overweight rating, emphasizing the importance of the Medicare coverage outlook for Eli Lilly’s GLP-1 medications, particularly Zepbound. The firm pointed out that recent discussions from UnitedHealth and CVS have raised questions about the path to broader Medicare coverage, which could significantly impact market growth. However, shares of Eli Lilly and Novo Nordisk fell after CVS Health decided to opt out of the Medicare obesity drug coverage model. These developments highlight the ongoing dynamics in the pharmaceutical landscape for Eli Lilly.
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