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7:12 AM
Jan 07, 2019
 |  BC Extra  |  Company News

Second big M&A deal of 2019: Lilly to acquire Loxo

Editor's Note: This article was updated on Jan 07, 2019 at 4:25 PM PST

Eli Lilly and Co. (NYSE:LLY) has reached an $8 billion agreement to acquire Loxo Oncology Inc. (NASDAQ:LOXO), the pharma's third cancer-focused acquisition in the past year. The deal also comes in the wake of the proposal last week by Bristol-Myers Squibb Co. (NYSE:BMY) to acquire Celgene Corp. (NASDAQ:CELG) for about $74 billion (see "Bristol-Myers' Next Phoenix Act?").

Loxo shareholders will receive $235 per share, a 68% premium over Loxo's close of $139.87 on Jan. 4, the last trading day before the deal was announced. The price is a 24% premium to Loxo's 52-week high of $189.96, which the cancer company hit on July 6, 2018. On an analyst call Monday, Lilly Chairman and CEO David Ricks said the $8 billion acquisition is pharma's largest deal to date.

The Loxo takeout demonstrates how quickly value...

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