Eli Lilly to Buy Loxo Oncology in $8 Billion Deal

Cash deal represents a 68% premium from Loxo’s last closing price

Allison Prang and

Peter Loftus

Updated Jan. 7, 2019 3:33 p.m. ET

Eli Lilly & Co. said it is buying Loxo Oncology Inc. for $8 billion in cash, a deal that expands the biopharmaceutical company’s oncology-treatment portfolio and adds to a string of recent deals in the cancer-treatment space.

Lilly, based in Indianapolis, will pay $235 a share, a 68% premium to Loxo’s closing price on Friday of $139.87. The $8 billion deal valuation includes the company’s shares outstanding as well as stock options.

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