ARTICLE | Finance
Loxo's FOMO
Why Loxo and Lilly struck a buyout deal so quickly
January 18, 2019 11:02 PM UTC
Loxo Oncology Inc. (NASDAQ:LOXO) management held advanced licensing discussions with four potential partners during 2018 for its LOXO-292 program targeting RET, but the company instead chose an uncontested takeout offer from Eli Lilly and Co. (NYSE:LLY) as the year came to a close.
The $8 billion acquisition came together quickly and quietly, according to an SEC document filed Thursday. Lilly delivered a $230-per-share offer to Loxo management on Dec. 20, 2018. Just 10 days later, Loxo told Lilly it would proceed with a sweetened $235-per-share “best and final” proposal that represented a 75% premium to the biotech’s most recent closing price...