U.S. pharmaceutical company Eli Lilly has agreed to acquire privately held biotech firm Kelonia Therapeutics in a deal worth up to $7 billion, giving it access to experimental cancer treatments and strengthening its oncology pipeline.
The agreement, announced on Monday, highlights Lilly’s ongoing acquisition strategy as it expands into areas such as inflammatory bowel disease, eye disorders, and gene-editing therapies. This move is part of a broader effort to reduce its dependence on its obesity drug portfolio, especially as competition intensifies in the rapidly growing weight-loss market.
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The deal is expected to significantly strengthen Eli Lilly’s oncology portfolio, which already includes blood cancer therapy Jaypirca, breast cancer treatment Verzenio, and several other cancer-focused candidates currently in development further reinforcing its position in a rapidly expanding yet highly competitive oncology market.
According to data from IQVIA, global spending on cancer medicines is projected to surge to $409 billion by 2028, up from approximately $223 billion in 2023, reflecting the growing demand and investment in cancer treatment worldwide.
Boston-based Kelonia Therapeutics is building a pipeline of genetic medicines centered on CAR-T therapies, which involve modifying a patient’s own immune cells to identify and destroy cancer cells.
One of its lead programs, KLN-1010 is currently in early-stage clinical testing for multiple myeloma, a form of cancer that affects plasma cells within the bone marrow.
From an investor’s standpoint, success over the next five years would be defined by Kelonia Therapeutics bringing its lead product to market, according to Bryan Roberts of Venrock and a member of Kelonia’s board.
He said Lilly’s decision to commit significant capital was a “testament to the data” and suggested the treatment could be best in class for multiple myeloma, with substantial market potential.
Unlike traditional CAR-T therapies, which require cells to be modified outside the body, Kelonia is pursuing an approach designed to generate the engineered cells inside a patient’s body.
RBC Capital Markets analyst Trung Huynh said “in vivo” CAR-T is viewed as the “holy grail” of cell therapy.
Under the agreement, which is anticipated to close in the second half of 2026, shareholders of Kelonia Therapeutics could receive up to $7 billion in cash, including an upfront payment of $3.25 billion along with additional milestone-based payouts.
The upfront payment might appear steep, Huynh said, but the price is supported by the strength of the clinical data and competitive dealmaking in the sector.
