Eli Lilly To Acquire Cancer Immunotherapy Company ARMO BioSciences for $1.6 BillionBy
Eli Lilly and Company has agreed to acquire ARMO BioSciences, a Redwood City, California-based pharmaceutical company focused on immuno-oncology, for $50 per share, or approximately $1.6 billion, in an all-cash transaction.
ARMO BioSciences is a late-stage immuno-oncology company that is developing a pipeline of proprietary product candidates designed to activate the immune system of cancer patients to recognize and eradicate tumors.
Lilly says the acquisition will bolster its immuno-oncology program through the addition of ARMO’s lead product candidate, pegilodecakin, a PEGylated IL-10 which has been tested 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 other solid tumor types. ARMO also has a number of other immuno-oncology product candidates in various stages of preclinical development.
Under the agreement, Lilly will commence a tender offer to acquire all shares of ARMO BioSciences for a purchase price of $50 per share in cash, or approximately $1.6 billion. The transaction is expected to close by the end of the second quarter of 2018, subject to customary closing conditions, including receipt of required regulatory approvals and the tender of a majority of the outstanding shares of ARMO’s common stock. After the closing of the tender offer, Lilly will acquire any shares of ARMO that are not tendered into the tender offer through a second-step merger at the tender offer price.
Source: Eli Lilly and Company and ARMO BioSciences