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Eli Lilly Announces Agreement to Acquire Kelonia Therapeutics for Up to $7 Billion

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Eli Lilly to Acquire Kelonia Therapeutics in Deal Worth Up to $7 Billion

Eli Lilly and Company has entered into a definitive agreement to acquire Kelonia Therapeutics, a clinical-stage biotechnology company. The transaction includes an upfront payment of $3.25 billion, with total potential payments reaching $7.00 billion contingent upon the achievement of future clinical, regulatory, and commercial milestones.

The acquisition is expected to close in the second half of 2026, pending customary closing conditions and regulatory approvals.

Transaction Details

  • The agreement was announced by Eli Lilly.
  • The upfront payment is $3.25 billion.
  • Additional payments of up to $3.75 billion are tied to specified milestones.
  • The transaction is anticipated to close in the second half of 2026.
  • Eli Lilly stated it will determine the accounting treatment in accordance with Generally Accepted Accounting Principles upon closing.

Background on Kelonia Therapeutics

Kelonia Therapeutics is a biotechnology company developing cell therapies for cancer and autoimmune diseases. The company was previously named Elcano Therapeutics.

Technology Platform:
Kelonia has developed an in vivo gene placement system called iGPS®, which uses engineered lentiviral-based particles. This technology is designed to enter T-cells inside a patient's body to generate chimeric antigen receptor T-cell (CAR-T) therapies, eliminating the need for ex vivo manufacturing.

Lead Program:
The company's lead investigational therapy is KLN-1010, a one-time intravenous gene therapy designed to generate anti-BCMA CAR-T cells for the treatment of multiple myeloma. Early clinical results for KLN-1010 were presented at the 2025 American Society of Hematology Annual Meeting.

Company History:
According to Bryan Roberts, a partner at venture capital firm Venrock, Kelonia came within a week of running out of cash on three separate occasions in the past. Venrock incubated the company and provided initial funding. Kelonia has operated with approximately $60 million in funding over the past five years.

Statements on the Acquisition

"Kelonia's platform has the potential to deliver rapid, durable responses in a simpler format than current CAR-T therapies," stated Jacob Van Naarden, executive vice president and president of Lilly Oncology.

"Combining with Lilly's strengths positions our platform to broaden the reach of cell therapy beyond current applications," said Kevin Friedman, Ph.D., chief executive officer of Kelonia.

Advisors and Forward-Looking Statements

  • Kirkland & Ellis LLP is acting as legal counsel for Lilly.
  • Jefferies LLC is acting as financial advisor and Goodwin Procter LLP is acting as legal counsel for Kelonia.

The press release from Eli Lilly includes forward-looking statements regarding the potential benefits of the acquisition, noting there are substantial risks and uncertainties in implementing the acquisition and in drug research, development, and commercialization.