United States-based Eli Lilly and Company has agreed to acquire Loxo Oncology, a Connecticut-based biopharmaceutical company that develops cancer drugs, it was reported yesterday.

The deal is valued at USD8bn in cash. Under the terms of the contract, Lilly will acquire all of the Loxo Oncology shares at USD235 per share. The transaction is likely to be completed by the end of the first quarter of 2019, depending on meeting of customary closing conditions such as receipt of regulatory approvals and approval of Loxo Oncology's shareholders.

Lilly Oncology president Anne White said, 'The acquisition of Loxo Oncology represents an exciting and immediate opportunity to expand the breadth of our portfolio into precision medicines and target cancers that are caused by specific gene abnormalities.'

Loxo Oncology chief operating officer Jacob Van Naarden said, 'We are excited to have reached this agreement with a team that shares our commitment to ensuring that emerging translational science reaches patients in need. We are confident that the work we have started, which includes an FDA approved drug, and a pipeline spanning from Phase two to discovery, will continue to thrive in Lilly's hands.'