Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

Lilly to buy Armo Biosciences for $1.6 billion to bolster cancer pipeline

Published 10/05/2018, 12:58
© Reuters. The logo of Lilly is seen on a wall of the Lilly France company unit, part of the Eli Lilly and Co drugmaker group, in Fegersheim near Strasbourg
LLY
-
ARMO
-

(Reuters) - Drugmaker Eli Lilly and Co (N:LLY) said on Thursday it would buy Armo BioSciences Inc (O:ARMO) for about $1.6 billion (1.2 billion pounds) to bolster its portfolio of cancer drugs, merely four months after the smaller drug developer went public.

Lilly's offer of $50 per share in cash represents a premium of 68 percent to Armo's Wednesday close. Armo's shares were trading at $50.10 before the opening bell.

The deal gives Lilly access to Armo's lead candidate, pegilodecakin, which is being studied in a late-stage clinical trial in pancreatic cancer, as well as earlier stage trials in other forms of cancer.

Lilly already has a large portfolio of cancer treatments. Its lung cancer drug, Alimta, helped it comfortably beat analysts' profit expectations for the first quarter.

The transaction is expected to close by the end of the second quarter of 2018.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.