Lilly to buy Loxo Oncology in a $8 billion deal, for a 68% premium
Shares of Loxo Onocology Inc. were indicated up about 33% in premarket trade Monday, after the biopharmaceutical company agreed to be acquired by Eli Lilly & Co. in a deal valued at $8.0 billion. Lilly's stock fell 2.7% in ahead of the open. Under terms of the deal, Lilly will pay $235 in cash for each Loxo share outstanding, which represents a 68% premium to Friday's closing price of $139.87, and 24% above Loxo's record close of $189.96 on July 6, 2018. The deal is the largest in a series of acquisitions by Lilly to broaden its cancer treatment efforts, Lilly said. The deal is expected to close by the end of the first quarter. The company said it will provide an update to 2019 financial guidance, when it reports fourth-quarter results on Feb. 13. Loxo shares have lost 12.4% over the past three months and Lilly shares have eased 0.3%, while the SPDR Health Care Select Sector ETF has shed 8.8% and the S&P 500 has declined 12.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.