Eli Lilly and Co. said on Jan. 7 it will buy Loxo Oncology Inc. for $8 billion, an expensive bet on a pipeline of cancer drugs that target rare genetic mutations and the biggest acquisition in Lilly’s 143-year history. The price represents a 68 percent premium to Loxo’s Jan. 4 share price close, which some analysts said was high for a company with one approved drug that it shares with a partner.
Loxo shares surged 65.5 percent to $231.51, close the offer price of $235 per share. Lilly shares were up 1.4 percent at $116.26.
