Eli Lilly to buy Loxo Oncology for $8 billion

According to Reuters, Eli Lilly said it would buy cancer drug manufacturer, Loxo Oncology for $8 billion cash pushing itself in the fast growing cancer therapy market. Lilly Chief Financial Officer Joshua Smiley told Reuters in November that the company was looking to increase its presence in the cancer therapy market by making similar acquisitions using $4 billion the company amassed as part of its divestiture of animal health unit Elanco.

Vitrakvi is Loxo’s major commercial medicine that has shown to be effective against a wide variety of cancers caused by a single, genetic mutation. Loxo is also developing a drug that targets a rare gene fusion mutation known as RET, seen in thyroid, lung and other cancers.
Lilly’s oncology portfolio includes lung cancer drug Alimta, Erbitux, a treatment for certain types of colorectal cancers, and gastric cancer medicine Cyramza.
In May, Lilly said it would buy Armo Biosciences Inc for $1.6 billion to expand its portfolio of drugs that help the body’s immune system fight cancer.