Eli Lilly said on Monday it will acquire privately held Kelonia Therapeutics in a deal worth up to $7 billion, as the drugmaker deepens its presence in next-generation cancer treatments.
The agreement includes an upfront payment of $3.25 billion, with additional payouts tied to clinical, regulatory and commercial milestones.
The transaction is expected to close in the second half of 2026.
The Kelonia acquisition is expected to bolster Lilly’s position in the global oncology market, estimated at $240 billion, while advancing its ambitions in cutting-edge cell therapies.
Cancer therapies remain a key pillar of it’s business, generating $9.4 billion in revenue last year out of total sales of $65.2 billion.
Bet on next-generation CAR-T therapies
Kelonia is developing an emerging form of cell therapy known as in vivo CAR-T, which aims to reprogram a patient’s immune cells directly inside the body to attack cancer.
This approach differs from existing CAR-T treatments, where cells are extracted, engineered in laboratories and then reinfused into patients.
“It’s an intravenously delivered therapy, one time,” said Jacob Van Naarden, president of Lilly oncology.
“It targets your body’s T-cells, transforms them into attacking the cancer in the body, and requires no preconditioning at all.”
The simplified process could make such therapies more widely accessible, removing the need for complex manufacturing and chemotherapy preconditioning that currently limits treatment to specialised centres.
Competition intensifies in blood cancer treatments
The deal comes amid heightened competition in the fast-growing market for blood cancer therapies.
CAR-T treatments have shown strong results in conditions such as multiple myeloma, drawing significant investment from major pharmaceutical companies.
Johnson & Johnson reported $1.89 billion in sales last year from its CAR-T therapy Carvykti.
Meanwhile, Gilead Sciences recently acquired its partner Arcellx and its competing therapy for $7.8 billion.
Lilly’s move signals its intent to become a stronger player in hematology, where it currently has a limited presence with a single approved blood cancer drug, Jaypirca.
Early-stage technology with long-term potential
Kelonia’s lead programme focuses on multiple myeloma, a form of blood cancer, though it remains in early stages of development.
In January, the company said the Food and Drug Administration had cleared its therapy for Phase 1 trials to assess safety in a small group of patients.
Despite the early stage, Lilly executives described the underlying data as highly promising.
The in vivo approach could potentially transform treatment by eliminating the need for personalised cell manufacturing, which is both costly and time-consuming.
If successful, the technology may broaden access to advanced therapies beyond large academic medical centres, where current CAR-T procedures are typically administered.
Part of broader dealmaking strategy
The acquisition is the latest in a series of deals by Lilly, which has been leveraging strong cash flows from its weight-loss drugs to expand its pipeline across therapeutic areas.
Last month, the company agreed to acquire Centessa Pharmaceuticals for about $6.3 billion to strengthen its neuroscience portfolio.
Earlier this year, it struck deals to buy Orna Therapeutics for up to $2.4 billion and Ventyx Biosciences for around $1.2 billion.
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