Eli Lilly Agrees to Buy Cancer-Drug Company for $1.6 Billion

  • ARMO BioSciences developing a series of immuno-oncology drugs
  • Lilly expects $50-a-share-deal to close in the second quarter
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Eli Lilly & Co. agreed to acquire ARMO BioSciences Inc. for about $1.6 billion in cash, in a deal that would add some promising cancer therapies to the pharmaceutical giant’s pipeline.

Under the terms of the proposed transaction, Lilly will commence a tender offer to buy all shares of ARMO for $50 a share, according to a news releaseBloomberg Terminal announcing the deal, a 68 percent premium relative to the $29.80 that the Redwood City, California-based company’s stock closed at in New York trading on Wednesday.