Eli Lilly to acquire Kelonia in major oncology expansion deal

Eli Lilly has agreed to acquire US based biotech Kelonia Therapeutics in a deal valued at up to 7 billion dollars, strengthening its position in cancer treatment innovation. The agreement includes an upfront payment with additional milestone based payments tied to clinical and commercial progress.

Kelonia is developing next generation in vivo CAR T therapies, a novel approach that reprograms a patient’s immune cells directly inside the body to target cancer. This differs from traditional CAR T treatments, which require complex cell extraction and manufacturing outside the body, often limiting access and increasing cost.

The company’s proprietary gene delivery platform aims to simplify treatment through a single infusion, potentially improving scalability and patient access. Its lead candidate is currently in early clinical development for multiple myeloma, a type of blood cancer.

The acquisition aligns with Lilly’s broader oncology strategy as it seeks to expand beyond its existing portfolio and compete with leading CAR T developers. The deal is expected to close in the second half of 2026, subject to regulatory approvals.