Eli Lilly is spending about $8 billion in cash to buy Loxo Oncology

11 days ago

Eli Lilly spends about $ 8 billion in cash to buy Lucso Orcomologie, a drug maker that is scaling up cancer treatments that target certain genetic abnormalities.

Lily said Monday in a prepared statement that the Loxo tumor drug could trigger a drug next year and target a defect of many types of tumors, including certain types of lung and thyroid cancer.

Lilly, famous for its insulin, as its counterpart, has focused on tumor growth in recent years and one of its best-selling products is the treatment of thyroid.

Eli Lilly and Associates will pay $ 235 for every stake in Stamford, a Connecticut-based company. A 68% premium on Friday's closing price of $ 139.87.

The transaction is expected to be finalized by the end of the first quarter.

Lilly's announcement is the second major drug purchase announced this year. This follows Bristol's $ 74 billion acquisition of Celgin by Bristol-Myers Squibb last week.