Jan 7, 2019 - Health

Eli Lilly to buy Loxo Oncology for $8 billion

Prescription drugs spilling out of a bottle

Photo: Roberto Machado Noa/LightRocket via Getty Images

Eli Lilly, the pharmaceutical giant known for making insulin, is acquiring Loxo Oncology for $8 billion in cash, the companies said today. Loxo has one FDA-approved cancer drug and a few others undergoing clinical testing.

Why it matters: Big pharma companies, eager to find to new medications to add to their sales lineups, are eyeing cancer drugs. This marks the second major drug acquisition in the past week, following Bristol-Myers Squibb's $74 billion takeover of Celgene.

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