Pharmaceutical giant Eli Lilly (LLY) remains on a buying spree, announcing that it is acquiring cancer drug developer Ajax Therapeutics for $2.3 billion in cash.
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The purchase of privately held Ajax Therapeutics comes as Eli Lilly looks to expand its pipeline of cancer drugs. Eli Lilly has been ramping up its next-generation cancer treatments through a buying spree that has seen it acquire Scorpion Therapeutics, Orna Therapeutics and Kelonia Therapeutics this year.
Ajax’s main medication, called “AJ1-11095,” is an experimental once-daily oral treatment in early-stage testing for people who have myelofibrosis, which is a rare, chronic blood cancer in which scar tissue builds up in the bone marrow, disrupting blood cell production.
Eli Lilly’s Cancer Focus
In a written Statement, Eli Lilly said that it looks forward to using its expertise in blood cancer to “hopefully deliver another important new medicine to patients and hematologists.” While known mostly for its weight-loss medications, Eli Lilly is also focused on cancer treatments.
Ajax’s blood cancer drug works by blocking a signaling protein that helps drive several blood cancers. According to the company, the drug is designed to attach to the protein in a different way from currently available medicines, which could help it work better in patients who stop responding to other treatments.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 16 Buy, two Hold, and one Sell recommendations issued in the last three months. The average LLY price target of $1,247.38 implies 31.53% upside from current levels.
