Eli Lilly and Company announced a definitive agreement to acquire Kelonia Therapeutics, a clinical-stage biotechnology company focused on in vivo gene delivery, in a deal valued at up to $7 billion.
The transaction includes an upfront payment of $3.25 billion, with additional payments tied to clinical, regulatory, and commercial milestones. The deal is expected to close in the second half of 2026, subject to customary approvals.
Kelonia has developed a proprietary in vivo gene placement system designed to enable the body to generate its own CAR-T cells, eliminating the need for complex ex vivo manufacturing. Its lead program, KLN-1010, is a Phase 1 investigational therapy targeting multiple myeloma, with early clinical data demonstrating promising tolerability and initial efficacy signals.
The acquisition strengthens Lilly’s capabilities in genetic medicine and expands its oncology pipeline with a platform that could simplify CAR-T therapies, improving access and scalability. By enabling in vivo generation of CAR-T cells, Kelonia’s approach has the potential to reduce cost, streamline treatment, and broaden applicability across multiple diseases.
Lilly plans to leverage Kelonia’s platform beyond its initial oncology focus, exploring applications across additional cancer types and other serious conditions.
The deal reflects Lilly’s continued investment in next-generation therapies and its strategy to advance innovative approaches that address limitations in existing treatment modalities.
KEY QUOTES:
“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. 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.”
Jacob Van Naarden, Executive Vice President And President Of Lilly Oncology And Head Of Corporate Business Development, Eli Lilly
“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. 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.”
Kevin Friedman, Chief Executive Officer, Kelonia Therapeutics
