Eli Lilly to acquire Ajax for up to $2.3B in cash

Eli Lilly (LLY) announced a definitive agreement for Lilly to acquire Ajax. Ajax’s lead asset, AJ1-11095, is an investigational, once-daily oral, Type II JAK2 inhibitor currently being evaluated in a Phase 1 clinical trial, AJX-101, in patients with myelofibrosis who have previously been treated with a Type I JAK2 inhibitor. The Phase 1 clinical trial of AJ1-11095 began in late 2024 and dose selection for future clinical development is expected in 2026. Under the terms of the agreement, Lilly will acquire Ajax and Ajax shareholders could receive up to $2.3B in cash, inclusive of an upfront payment and subsequent payments upon the achievement of certain clinical and regulatory milestones. The transaction is subject to customary closing conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Lilly will determine the accounting treatment of this transaction following closing in accordance with GAAP. This transaction will thereafter be reflected in Lilly’s financial results and financial guidance.