Lilly to strengthen IO pipeline with $1.6B Armo acquisition

Eli Lilly and Co. (NYSE:LLY) is acquiring Armo BioSciences Inc. (NASDAQ:ARMO) for $50 per share in cash, or about $1.6 billion. The price is a 68% premium to Armo's close of $29.82 on May 9 before the deal was announced and a 194% premium to the company's IPO price of $17 per share in January (see BioCentury, Feb. 2).

Lilly said the deal will bolster its immuno-oncology pipeline with Armo's lead candidate pegilodecakin (AM0010)...