Lilly to acquire Kelonia Therapeutics to advance in vivo CAR-T cell therapies

Eli Lilly (NYSE:LLY) agreed to acquire Kelonia Therapeutics to broaden Lilly's genetic medicine and in vivo CAR-T capabilities.

Rhea-AI Summary

Eli Lilly (NYSE:LLY) agreed to acquire Kelonia Therapeutics to broaden Lilly's genetic medicine and in vivo CAR-T capabilities. The deal offers Kelonia shareholders up to $7.00 billion in cash, including a $3.25 billion upfront payment. KLN-1010, Kelonia's Phase 1 in vivo BCMA CAR-T, showed encouraging data at the 2025 ASH plenary session. The transaction is expected to close in H2 2026 and remains subject to customary regulatory approvals and closing conditions.

Positive

• Up to $7.00B total consideration announced
• $3.25B upfront cash payment to Kelonia shareholders
• KLN-1010 showed encouraging early clinical results at 2025 ASH plenary
• Acquires Kelonia's in vivo iGPS lentiviral platform to expand genetic medicine

Negative

• Transaction subject to regulatory approvals and customary closing conditions
• Closing only expected in H2 2026, creating timing uncertainty
• Lilly will determine accounting treatment at closing, which may affect guidance

Argus Apr 20 session

-0.77% close to close Open Argus

Details

News Market Reaction – LLY

On Apr 20, the day this news came out, LLY closed 0.77% below the previous close.

Data tracked by StockTitan Argus for the Apr 20 session.

Market Context

This announcement adds another sizable acquisition to Lilly’s recent deal streak, committing up to $...

Analysis

This announcement adds another sizable acquisition to Lilly’s recent deal streak, committing up to $7.00 billion (including $3.25 billion upfront) for Kelonia’s in vivo CAR-T platform and Phase 1 KLN-1010 program. It reinforces Lilly’s push into genetic medicine alongside earlier acquisitions in gene therapy, inflammatory disease, and sleep medicine. Investors may track future updates on trial progress, regulatory milestones, and how these transactions shape revenue beyond the $65.2 billion reported for 2025.

Key Figures

Total Kelonia consideration: $7.00 billion Upfront payment: $3.25 billion KLN-1010 stage: Phase 1 +4 more

Total Kelonia consideration

$7.00 billion

Maximum cash payable to Kelonia shareholders including milestones

Upfront payment

$3.25 billion

Cash upfront to Kelonia shareholders at closing

KLN-1010 stage

Phase 1

In vivo CAR-T trial for relapsed/refractory multiple myeloma

2025 revenue

$65.2 billion

Reported in proxy statement for full-year 2025

2025 GAAP EPS

$22.95

Reported EPS for 2025 in proxy materials

2025 non-GAAP EPS

$24.21

Non-GAAP EPS for 2025 in proxy materials

2025 TSR

40%

Total shareholder return for 2025 versus S&P 500 and peers

Previous Acquisition Reports

5 past events · Latest: Mar 31

Same Type 5 events

1. Mar 31

   Strategic acquisition

   24h Move

   +3.7%

   Centessa acquisition expanding sleep-wake disorder pipeline with OX2R agonists.

2. Feb 09

   Cell therapy buyout

   24h Move

   -1.3%

   Orna acquisition to advance in vivo cell therapies with up to $2.4B payout.

3. Jan 07

   Inflammation platform deal

   24h Move

   -2.1%

   All-cash Ventyx acquisition adding NLRP3 inhibitor pipeline for inflammatory diseases.

4. Dec 09

   Acquisition completion

   24h Move

   -1.5%

   Completion of Adverum tender offer with cash plus CVR consideration structure.

5. Oct 24

   Gene therapy acquisition

   24h Move

   +0.5%

   Agreement to acquire Adverum and lead gene therapy Ixo-vec for wet AMD.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

in vivo, lentiviral, car-t, gene therapy, +4 more

8 terms

in vivo medical

"pioneering in vivo gene delivery, today announced a definitive agreement"

In vivo describes tests or experiments performed inside a living organism, such as an animal or human, to observe how a drug, device or biological process behaves in a real, functioning body. Investors care because in vivo results reveal safety, effectiveness and possible side effects that lab tests cannot, much like road-testing a prototype car in traffic rather than only on a bench — outcomes can strongly influence regulatory approval, clinical success and a company’s valuation.

lentiviral medical

"a potentially first-in-class lentiviral in vivo CAR-T therapy currently in Phase 1"

Lentiviral describes a family of engineered viruses used as delivery vehicles to insert genetic material into living cells, much like a targeted courier carrying a package into a locked building. Investors care because lentiviral tools are central to many gene and cell therapies, affecting a product’s potential effectiveness, manufacturing complexity, regulatory hurdles, safety profile, and ultimately the commercial and financial prospects of companies developing such treatments.

car-t medical

"generate chimeric antigen receptor T-cell (CAR-T) therapies that can treat"

CAR-T is a type of cancer therapy that reprograms a patient’s own immune cells to seek and destroy specific cancer cells, like teaching guard dogs a new scent to track intruders. It matters to investors because CAR-T treatments can command high prices, drive strong revenue for successful developers, and carry regulatory and manufacturing risks that can sharply affect a company’s valuation and long-term growth prospects.

gene therapy medical

"an investigational, one-time intravenous gene therapy that generates anti-B-cell"

Gene therapy is a medical technique that involves altering or replacing faulty genes in a person's cells to treat or prevent disease. It is considered a promising area of innovation because it has the potential to provide long-term or even permanent solutions to genetic conditions. For investors, advancements in gene therapy can signal opportunities in biotech companies and emerging treatments with significant growth potential.

bcma medical

"generates anti-B-cell maturation antigen (BCMA) CAR-T cells, targeting the BCMA"

BCMA (B‑cell maturation antigen) is a protein that sits on the surface of certain cancer cells, especially those from a type of blood cancer, and acts like a visible target for therapies. Investors care because drugs that successfully hit this target—using approaches like engineered immune cells or targeted antibodies—can change treatment options and drive revenue, while trial results, safety, and approval prospects directly affect a company’s valuation.

clinical-stage medical

"Kelonia Therapeutics, Inc. ("Kelonia"), a clinical-stage biotechnology company"

Clinical-stage describes a drug, therapy, or company whose product is being tested in human trials but has not yet received regulatory approval. For investors, it signals that the project has moved beyond lab work into real-world testing—meaning higher potential reward if trials succeed but also clear risks from trial setbacks, costs, and regulatory delay; think of it like a prototype car on public road tests that could either prove its value or reveal problems that stop it from reaching production.

gaap regulatory

"determine the accounting treatment of this transaction in accordance with Generally Accepted Accounting Principles (GAAP)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

milestones financial

"subsequent payments upon achievement of certain clinical, regulatory and commercial milestones."

Milestones are specific, measurable progress points a company aims to reach during a project—like completing a clinical trial step, securing a regulatory approval, or hitting a sales target. They matter to investors because each checkpoint reduces uncertainty about the business plan, can trigger payments or changes in valuation, and often signals whether future revenue or growth is likely, similar to passing checkpoints on a racecourse that show how close you are to the finish line.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Kelonia's lead program, KLN-1010, is a potentially first-in-class lentiviral in vivo CAR-T therapy currently in Phase 1 for relapsed/refractory multiple myeloma with clinical data recently highlighted in the 2025 ASH Annual Meeting plenary session

Acquisition expands Lilly's genetic medicine capabilities with a novel in vivo gene delivery and integration technology that has potential for broad applicability

INDIANAPOLIS and BOSTON, Mass., April 20, 2026 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) and Kelonia Therapeutics, Inc. ("Kelonia"), a clinical-stage biotechnology company pioneering in vivo gene delivery, today announced a definitive agreement for Lilly to acquire Kelonia.

Kelonia has developed a proprietary in vivo gene placement system (iGPS^® ) that uses specially engineered lentiviral-based particles designed to efficiently and selectively enter T-cells inside the body, allowing the patient's own body to generate chimeric antigen receptor T-cell (CAR-T) therapies that can treat underlying disease. Kelonia's lead program, KLN-1010, is an investigational, one-time intravenous gene therapy that generates anti-B-cell maturation antigen (BCMA) CAR-T cells, targeting the BCMA protein expressed on the surface of multiple myeloma cells. Encouraging early clinical results were presented in the plenary session of the 2025 American Society of Hematology Annual Meeting, providing initial clinical validation and demonstrated promising tolerability. KLN-1010 could represent a transformative advance in the treatment of multiple myeloma by eliminating the complexities of ex vivo patient-specific cell therapy manufacturing, and pre-administration chemotherapy.

"Autologous CAR-T therapies have meaningfully improved outcomes for patients with various cancers, but significant manufacturing, safety, and access barriers mean that only a fraction of eligible patients actually receive them. Kelonia's in vivo platform has the potential to change that by delivering rapid, durable responses in a far simpler, off-the-shelf format," said Jacob Van Naarden, executive vice president and president of Lilly Oncology and head of corporate business development. "The early clinical data for KLN-1010 are highly encouraging, both as a potential step forward for patients with multiple myeloma and as proof of concept for Kelonia's platform.  We look forward to working together with the Kelonia team to rapidly advance KLN-1010 to address patient need and recognize the full potential of their platform in other conditions where patients may benefit."

"Kelonia's leadership in advancing the immense promise of in vivo cell therapy is unmatched, extending its reach and impact beyond the traditional boundaries of personalized medicine," said Kevin Friedman, Ph.D., chief executive officer of Kelonia. "We have demonstrated the ability to achieve deep multiple myeloma remissions with significantly reduced complexity and cost relative to ex vivo CAR T-cell approaches. In combination with Lilly's strengths, our in vivo iGPS platform is positioned to broaden the reach of cell therapy beyond the current CAR-T landscape in hematologic malignancies and to transform treatment across a far wider range of cancers and other serious diseases. It's been a privilege continuing the journey started by Michael Birnbaum and the Venrock team. I am deeply grateful to our employees, partners, and investigators, and most importantly, the patients who make this progress possible."

Under the terms of the agreement, Lilly will acquire Kelonia, and Kelonia shareholders will receive up to $7.00 billion in cash, inclusive of an upfront payment of $3.25 billion, and subsequent payments upon achievement of certain clinical, regulatory and commercial milestones.

The transaction is subject to customary closing conditions, including customary regulatory approvals, and is expected to close in the second half of 2026. Lilly will determine the accounting treatment of this transaction in accordance with Generally Accepted Accounting Principles (GAAP) upon closing. This transaction will thereafter be reflected in Lilly's financial results and financial guidance.

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

About Kelonia Therapeutics
Kelonia Therapeutics is a clinical-stage biotechnology company pioneering a new wave of genetic medicines using its in vivo gene placement system (iGPS^®). Kelonia's elegant, cutting-edge in vivo gene delivery technology uses an advanced lentiviral vector particle harboring envelope modification to improve in vivo gene transfer efficiency and tropism molecules to facilitate tissue-specific delivery. Kelonia is building a pipeline of genetic medicines across a range of diseases, with the bold goal of making CAR-T cell therapies accessible to every patient in need, when and where they need them. Kelonia's lead candidate, KLN-1010, is an in vivo anti-BCMA CAR-T therapy for multiple myeloma being evaluated in a Phase 1 clinical trial. Kelonia was incubated and seed funded by Venrock. For more information, please visit: https://www.keloniatx.com/.

About Lilly
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for nearly 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram, and LinkedIn. F-LLY

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about the benefits of Lilly's acquisition of Kelonia and Kelonia's product candidates for oncology, and reflects Lilly's current beliefs and expectations. However, as with any such undertaking, there are substantial risks and uncertainties in implementing the acquisition and in the process of drug research, development, and commercialization. Among other things, there can be no guarantee that the acquisition will be consumed on the intended timeline or at all, that Lilly will realize the expected benefits of the acquisition, that the acquisition will achieve the results discussed in this release, or that the acquisition will yield commercially successful products. For further discussion of these and other risks and uncertainties that could cause actual results to differ from Lilly's expectations, see Lilly's Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.

Refer to:	Ashley Hennessey; gentry_ashley_jo@lilly.com; 317-416-4363 (Media)
	Michael Czapar; czapar_michael_c@lilly.com; 317-617-0983 (Investors)
	Krystle Gibbs, Kit Rodophele; TBCKelonia@tenbridgecommunications.com;  (Kelonia Media)

 

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SOURCE Eli Lilly and Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the financial terms of Lilly's April 20, 2026 deal to acquire Kelonia (LLY)?

Lilly will pay up to $7.00 billion in cash, including a $3.25 billion upfront payment. According to Lilly, additional payments are contingent on clinical, regulatory, and commercial milestones tied to Kelonia programs.

What is KLN-1010 and what clinical stage was reported in the Kelonia acquisition by LLY?

KLN-1010 is an in vivo lentiviral BCMA CAR-T therapy currently in Phase 1 development. According to Kelonia, early clinical results were presented at the 2025 ASH plenary and were described as encouraging with promising tolerability.

When is the Lilly (LLY) acquisition of Kelonia expected to close and what approvals are required?

The transaction is expected to close in H2 2026 and remains subject to customary regulatory approvals and closing conditions. According to Lilly, final timing will depend on satisfying those conditions and standard review processes.

How does Kelonia's in vivo iGPS platform change Lilly's cell therapy capabilities after the LLY acquisition?

Kelonia's iGPS uses engineered lentiviral particles to generate CAR-T cells inside the body, potentially simplifying manufacturing. According to Lilly, the platform could broaden in vivo gene delivery across cancers and other serious diseases beyond ex vivo CAR-T limits.

Will the Kelonia acquisition immediately affect Lilly's (LLY) financial reporting or guidance?

Lilly will determine the accounting treatment upon closing and said the transaction will be reflected in its financial results and guidance thereafter. According to Lilly, the specific reporting impact depends on post-close accounting decisions and timing.

What milestones trigger additional payments in Lilly's acquisition of Kelonia (LLY)?

Additional consideration beyond the upfront cash is tied to achievement of specified clinical, regulatory, and commercial milestones. According to Lilly, those milestone payments are contingent on future progress and commercialization outcomes for Kelonia programs.