Eli Lilly and Company (LLY) and Kelonia Therapeutics, Inc., a clinical-stage biotechnology company, on Monday announced a definitive agreement for Lilly to acquire Kelonia. The acquisition may expand Lilly's genetic medicine capabilities with in vivo gene delivery and integration technology.
Under the terms of the agreement, Lilly will acquire Kelonia, and Kelonia shareholders will receive up to $7 billion in cash, including an upfront payment of $3.25 billion and subsequent payments upon achievement of certain clinical, regulatory, and commercial milestones.
Kelonia Therapeutics develops genetic medicines using its in vivo gene placement system (iGPS).The acquisition includes Kelonia's lead program, KLN-1010,which is an investigational, one-time intravenous gene therapy that is in Phase 1 clinical trial for multiple myeloma.
The transaction is expected to close in the second half of 2026, subject to conditions.
"We look forward to working together with the Kelonia team" and to "rapidly advance KLN-1010 to address patient need and recognise the full potential of their platform in other conditions where patients may benefit" said Jacob Van Naarden, executive vice president and president of Lilly Oncology,
For Lilly, Kirkland & Ellis LLP is acting as legal counsel.
LLY has traded between $623.78 and $1,133.95 over the last year. The stock closed Friday's trade at $927.03.
LLY is currently trading at $924.61, down 0.22%.
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