Eli Lilly () has agreed to buy Kelonia Therapeutics for up to $7 billion, securing access to a potentially cutting-edge treatment for blood cancer.
Kelonia shareholders will receive an initial payment of $3.25 billion in cash, plus subsequent payments tied to the achievement of clinical, regulatory and commercial milestones, Lilly said in a statement.
Kelonia’s main drug seeks to treat patients with a type of blood cancer called multiple myeloma who do not respond to available treatments.
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The privately held company is developing an innovative type of technology known as CAR-T. Traditionally, cells from a patient’s immune system are removed from the body and genetically engineered to bind to cancer cells, then reinfused to destroy them.
Kelonia’s approach is known as “in vivo” therapy, which means it works directly inside the patient after a single infusion. There is no need to remove cells to modify them, nor to administer chemotherapy before returning them to the body.
The company is currently recruiting patients for an early-phase clinical study of the drug.
While investors are primarily focused on Lilly’s weight-loss treatments, the company is also a big player in oncology, driven in part by its 2019 acquisition of Loxo Oncology for $8 billion.
O Wall Street Journal reported for the first time, on Sunday (19), that Lilly was close to closing a deal to acquire Kelonia.
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