Shares of Loxo Oncology ($LOXO) shot higher Monday on news that Eli Lilly ($LLY) is going to buy them out for $8 billion, a 68% premium from Friday’s close. Under the terms of the deal, Eli Lilly will pay $235 per share in an all cash deal.
Lilly plans on using this acquisition as a way to broaden the scope of their oncology portfolio as they continue to work on expanding the cancer treatments they offer.
“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,” said Josh Bilenker, M.D., chief executive officer of Loxo Oncology. “Tumor 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.”