Loxo Oncology (LOXO) stock rocketed 65% early Monday after pharma giant Eli Lilly (LLY) announced its $8 billion plan to acquire the smaller cancer-focused biotech.
XIn premarket trading on the stock market today, Loxo stock soared 65.5%, near 231.40. Lilly stock dipped 2.9%, near 111.30.
Lilly, a top 10 pharmaceutical stock, will pay $235 per share in cash to take over Loxo. The deal comes less than two months after the Food and Drug Administration approved Loxo's first cancer treatment, known now as Vitrakvi.
"We are gratified that Lilly has recognized our contributions to the field of precision medicine and are excited to see our pipeline benefit from the resources and global reach of the Lilly organization," Loxo Chief Executive Josh Bilenker said in a written statement.
The deal also follows Bristol-Myers Squibb's (BMY) announcement last week that it would buy Celgene (CELG) for $74 billion.
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The post Biotech Buying Spree: Loxo Flies 65% on Lilly's $8 Billion Takeover Bid appeared first on Investor's Business Daily.
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