Business Corpus: Biotech Buying Spree: Loxo Flies 65% On Lilly's $8 Billion Takeover BidLoxo stock rocketed 65% early Monday after pharma giant Eli Lilly announced its $8 billion plan to acquire the smaller cancer-focused biotech. Loxo's first drug was approved in November. The post Biotech Buying Spree: Loxo Flies 65% On Lilly's $8 Billion Takeover Bid appeared first on Investor's Business Daily.

[Collection]

Loxo Oncology (LOXO) stock rocketed nearly 70% early Monday after pharma giant Eli Lilly (LLY) announced its $8 billion plan to acquire the smaller cancer treatment-focused biotech.

In early trading on the stock market today, Loxo stock soared 66.4%, near 232.70. Lilly stock dipped 1.3%, near 113.20.

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 Oncology Chief Executive Josh Bilenker said in a written statement.

Cancer Treatment At The Forefront

Analysts have long called for Loxo to become a takeover candidate. That fervor became louder in November with Loxo's first FDA approval of a cancer treatment.

Vitrakvi — developed with Bayer (BAYRY) — belongs to the precision medicine class of drugs. Rather than target a type of cancer, Vitrakvi treats cancer by focusing on a specific genetic mutation. Small biotechs Deciphera (DCPH) and Blueprint Medicines (BPMC) also work in this arena.

Early Monday, Blueprint stock popped 15% and Deciphera stock jumped 17%.

In addition to Vitrakvi, Loxo Oncology is also studying a trio of potential treatments for genetic mutations associated with cancer.

"Using tailored medicines to target key tumor dependencies offers an increasingly robust approach to cancer treatment," Lilly Chief Scientific Officer and Daniel Skovronsky 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. Some analysts say the deal will help Bristol to become a giant in multiple myeloma treatments.

YOU MIGHT ALSO LIKE:

Bristol-Myers Angles To Become Mega-Pharma With $74 Billion Celgene Bid

How To Build Long-Term Profits In Stocks? Take Many Gains At 20%-25%

How To Trade Growth Stocks: Why You Should Buy On The Stock Market Follow-Through Day

The post Biotech Buying Spree: Loxo Flies 65% On Lilly's $8 Billion Takeover Bid appeared first on Investor's Business Daily.