Lilly to acquire Armo BioSciences for $1.6 billion

Eli Lilly has entered an agreement to acquire ARMO BioSciences for approximately $1.6 billion in cash, expanding its portfolio of immuno-oncology therapies. The acquisition, subject to customary closing conditions, is expected to close 2Q18.
ARMO, based in Redwood City, CA is developing cancer treatments that harness the body’s immune system to fight tumors. Its lead candidate, AM0010 is being investigated in a pivotal Phase III trial in pancreatic cancer. According to Armo, AM0010 has demonstrated clinical benefit on its own, but can also be combined with chemotherapy and checkpoint inhibitor therapies across several tumor types.
AM0010, a long-acting form of recombinant human interleukin 10 (IL-10) linked to polyethylene glycol (PEG), is also being investigated in Phase II studies in combination with Merck’s Keytruda and Bristol-Myers Squibb’s Opdivo in patients with metastatic non-small-cell lung cancer.
Armo’s immune-oncology pipeline also includes several preclinical candidates—AM0001, an anti-PD-1 monoclonal antibody; AM0003, an anti-LAG-3 checkpoint inhibitor; AM0015, a form of recombinant human interleukin-15 (IL-15); and AM0012, a form of recombinant human interleukin-12 (IL-12).