Eli Lilly is buying ARMO BioSciences in a deal valued at around $1.6
billion, to ramp up its immune-oncology pipeline.
Under the
deal, Lilly will pay $50 per share for ARMO in an all-cash transaction, securing
itself access to the firm’s lead immuno-oncology asset, pegilodecakin, which is
being studied in multiple tumour types.
The drug
is a PEGylated IL-10 which has shown clinical benefit as a single agent, and in
combination with both chemotherapy and checkpoint inhibitor therapy, across
several tumor types.
Pegilodecakin
is currently being studied in a Phase III clinical trial in pancreatic cancer,
as well as earlier-Phase trials in lung and renal cell cancer, melanoma and
others. ARMO also has a number of other immuno-oncology product candidates in
various stages of pre-clinical development.
"The
acquisition of ARMO BioSciences adds a promising next generation clinical
immunotherapy asset to Lilly's portfolio of innovative oncology medicines,”
noted Sue Mahony, Lilly senior vice president and president of Lilly Oncology.
"We
believe that pegilodecakin has a unique immunologic mechanism of action that
could eventually allow physicians to offer new hope for many cancer patients,”
added Levi Garraway, senior vice president, global development and medical
affairs, Lilly Oncology.
"Given
the resources that Lilly, a leader in oncology R&D, can bring to bear to
maximize the value of pegilodecakin and the rest of the ARMO pipeline, we
believe it is in the best interest of ARMO, our stockholders and the patients
we serve, to execute this transaction,” said ARMO’s president and chief
executive, Peter Van Vlasselaer.
The
transaction is expected to close by the end of the second quarter, subject to
customary closing conditions.
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