Eli Lilly is buying into the cancer immunotherapy business.
In a deal announced Thursday, Lilly said it will acquire a small biotech, ARMO Biosciences, for $50 per share, or $1.6 billion. The transaction values ARMO shares at a 68 percent premium to their closing price on Wednesday night. ARMO, of Redwood City, CA, is developing a new type of drug that stimulates the immune system to fight cancer.
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I’m guessing that the early signals from the pegilodecakin P3 trial raise doubts, and that Lilly more attracted to the rest of the ARMO pipeline. Otherwise, 1.6B seems either too much or too little.
Will acquiring the loss making company benefit Lilly? https://news.alphastreet.com/eli-lilly-acquires-armo-biosciences-strengthens-oncology-portfolio/