Eli Lilly and Company said on Monday that it will acquire privately held cancer drug developer Ajax Therapeutics for up to $2.3 billion in cash, as the U.S. drugmaker continues to strengthen its oncology pipeline.
The move is part of Eli Lilly’s broader push into next-generation cancer treatments, following a series of recent acquisitions and investments. The company has been actively expanding its oncology portfolio through deals involving firms such as Scorpion Therapeutics, Orna Therapeutics, and Kelonia Therapeutics.
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Ajax Therapeutics’ lead candidate, AJ1-11095, is an experimental once-daily oral therapy currently in early-stage development for patients previously treated for myelofibrosis, a rare and chronic blood cancer in which scar tissue forms in the bone marrow and interferes with normal blood cell production.
Jacob Van Naarden, president of Eli Lilly and Company’s oncology division, said the company is eager to leverage its expertise in blood cancers in order to “hopefully deliver another important new medicine to patients and hematologists.”
Scotiabank analyst Louise Chen said the deal “builds on Lilly’s established capabilities in blood cancers and helps expand its future commercial products beyond obesity.”
Ajax Therapeutics’ experimental drug works by inhibiting JAK2, a key signaling protein involved in the development of several blood cancers. The company says the therapy is designed to bind to JAK2 in a different way compared with currently available treatments, which may allow it to remain effective for longer or work better in patients who no longer respond to existing therapies.
The drug is also being studied for related conditions, including polycythemia vera, a blood disorder in which the body produces an excessive number of red blood cells.
Eli Lilly and Company stated that the total deal value includes an upfront cash payment as well as additional milestone-based payments tied to future clinical and regulatory progress.
