Jan 17, 2019

Eli Lilly's buyout of Loxo Oncology took only 2 weeks

Photo: Igor Golovniov/SOPA Images/LightRocket via Getty Images

Pharmaceutical company Eli Lilly made its first offer to buy Loxo Oncology on Dec. 20, 2018, and it was eager to close the deal before the J.P. Morgan Healthcare Conference last week, according to new regulatory documents filed by Loxo.

Between the lines: Acquisitions usually take several months of negotiations, not 2 weeks, but both sides in this $8 billion deal moved extraordinarily quickly in part to make a big splash at the health care industry's signature event.

Details: Eli Lilly and Loxo had been in touch since April 2018, but acquisition talks did not begin until last month.

  • Loxo has one FDA-approved drug on the market, but Eli Lilly appeared to be most interested in LOXO-292 — a cancer drug that had "positive interim data" in early clinical trials and received "breakthrough" status from the FDA in September.
  • Loxo did not pursue any other offers, and Eli Lilly only revised its offer once — from the initial $230 per share to the final $235 per share. Loxo's board said Eli Lilly's deal outweighed "the risks of outreach to third parties," according to the filing.
  • Josh Bilenker — an oncologist who used to work at the FDA, is Loxo's CEO and is an operating partner at the private equity firm Aisling Capital, which owns a large chunk of Loxo — will make $45 million from the shares he owns once the deal closes, according to the documents. Bilenker will make another $241 million from the deal based on his vested and unvested stock options.
  • Loxo expects revenue of all of its cancer medicines will peak in 2031 at $2 billion with a 43% profit margin, assuming FDA approvals.

Go deeper

Amid racial unrest, a test at the polls

Photo: Stephen Maturen/Getty Images

Eight states plus D.C. are holding primary elections today following a week of intense protests across the country over the brutal police killing of George Floyd.

Why it matters: It's the first major test for voting since the national outcry. Concerns over civil unrest and the police — as well as the coronavirus and expanded absentee voting — could reduce the number of voters showing up in person but heighten tensions for those who do.

Axios-Ipsos poll: America’s big racial divide on police, virus

Data: Ipsos/Axios survey; Note: ±3.2% margin of error; Chart: Andrew Witherspoon/Axios

A new Axios-Ipsos poll finds that America has a massive racial gulf on each of our twin calamities — trust in police, and fear of the coronavirus.

  • 77% of whites say they trust local police, compared with just 36% of African Americans — one of many measures of a throbbing racial divide in Week 11 of the Axios-Ipsos Coronavirus Index, taken the week George Floyd was killed by a white policeman in Minneapolis.
Updated 48 mins ago - Politics & Policy

Updates: George Floyd protests nationwide

Police officers wearing riot gear push back demonstrators outside of the White House on Monday. Photo: Jose Luis Magana/AFP via Getty Images

Protests over the death of George Floyd and other police-related killings of black people continued for a seventh day across the U.S., with President Trump threatening on Monday to deploy the military if the unrest continues.

The latest: Four police officers were struck by gunfire while standing near a line in St Louis on Monday after a peaceful demonstration, Police Chief John Hayden said early Tuesday. They were all taken to hospital with non-life threatening injuries. He said a small group of people had thrown rocks and fireworks at police officers.