Eli Lilly and Company announced on April 20 that it will acquire clinical-stage cancer biotechnology company Kelonia Therapeutics for $7 billion.
The acquisition expands Eli Lilly’s pipeline into experimental cancer treatments, specifically in vivo genetic therapy. Kelonia Therapeutics is advancing CAR-T genetic medicines that reprogram a cancer patient’s T-cells to fight cancer and underlying diseases. Its lead program, KLN-1010, targets cancerous myeloma plasma cells that affect bone marrow.
Jacob Van Naarden, executive vice president and president of Lilly Oncology and head of corporate business development, said in a statement that in vivo CAR-T therapies have helped patients fight a range of cancers, but barriers to access and manufacturing challenges have limited their widespread use.
“Kelonia’s in vivo platform has the potential to change that by delivering rapid, durable responses in a far simpler, off-the-shelf format,” Van Naarden said.
“The early clinical data for KLN-1010 are highly encouraging, both as a potential step forward for patients with multiple myeloma and as proof of concept for Kelonia’s platform. We look forward to working together with the Kelonia team to rapidly advance KLN-1010 to address patient need and recognize the full potential of their platform in other conditions where patients may benefit.”
Kelonia’s in vivo gene therapy treatment differs sharply from current ex vivo cancer treatments, which harvest a patient’s cells, genetically modify them in a lab to introduce a new gene or modify a faulty gene, and then reintroduce the cells back into the patient’s body. The process can take between five and six weeks.
Kevin Friedman, CEO of Kelonia, said the promise of in vivo cell therapy is unmatched in personalized medicine.
“We have demonstrated the ability to achieve deep multiple myeloma remissions with significantly reduced complexity and cost relative to ex vivo CART-cell approaches,” Friedman said.
“In combination with Lilly’s strengths, our in vivo iGPS platform is positioned to broaden the reach of cell therapy beyond the current CAR-T landscape in hematologic malignancies and to transform treatment across a far wider range of cancers and other serious diseases.”
Under the terms of the deal, Eli Lilly will pay Kelonia shareholders of record $7 billion in cash, including an initial payment of $3.25 billion. The remainder will be paid as Kelonia hits certain clinical, regulatory, and commercial milestones.
Lilly said it expects the deal to close in the second half of 2026, pending regulatory approvals and closing conditions. Kirkland & Ellis LLP acted as legal counsel for Eli Lilly in the deal, while Goodwin Procter LLP provided legal counsel to Kelonia Therapeutics, with Jefferies LLC serving as its financial adviser.
The deal for Kelonia Therapeutics is the second major acquisition in less than a month for Eli Lilly. On March 31, Lilly announced it would acquire Centessa Pharmaceuticals biotechnology company in a deal valued at up to $7.8 billion. London, England-based Centessa is developing treatments for daytime sleep disorders such as narcolepsy.
