Eli Lilly to acquire cancer cell therapy startup Kelonia Therapeutics for $3.2 billion

Eli Lilly announced it will buy privately held Kelonia Therapeutics, a biotech focused on cell therapies for cancer and autoimmune diseases, in a deal valued at $3.2 billion.

Kelonia has operated on roughly $60 million of funding over the past five years and has faced financial challenges staying afloat.

The acquisition was discussed in a Q&A with Venrock partner Bryan Roberts, who explained the strategic reasons behind Lilly’s interest in the struggling company.

Industry observers see the purchase as a move by Lilly to bolster its pipeline in cell-based treatments and expand its presence in oncology and immune-mediated markets.