Lilly Acquires Boston Biotech Kelonia for $3.25 Billion in Latest Investment
Eli Lilly & Co. plans to acquire Kelonia Therapeutics, a Boston gene therapy company. Lilly will pay $3.25 billion in cash under the agreement.
Deal details
The transaction is scheduled to close in the second half of 2026. Kelonia could receive up to $7 billion if clinical and commercial milestones are met.
Kelonia employs 62 people, most of them in Boston. Lilly said the purchase will expand its cell therapy capabilities.
Technology and clinical progress
Kelonia’s lead program, KLN-1010, targets blood cancers by genetically modifying immune cells inside the patient. The approach reprograms immune cells to attack tumors without removing cells from the body.
Jacob Van Naarden, Lilly’s executive vice president and president of Lilly Oncology, described early clinical results as encouraging. Kelonia CEO Kevin Friedman said the platform could broaden the reach of cell therapy beyond current CAR-T approaches.
Strategic context in Boston
Lilly acquires Boston biotech Kelonia in a $3.25 billion cash deal, part of its latest investment push. The company has been increasing investments across the Boston biotech scene.
This purchase is at least Lilly’s third Massachusetts acquisition this year. In February, Lilly announced plans to buy Orna Therapeutics for up to $2.4 billion.
A month later, Lilly moved to acquire Centessa Pharmaceuticals in a deal valued at about $6.3 billion. Those transactions reflect Lilly’s focus on in vivo cell therapy and specialty medicines.
Partnerships and local investments
Lilly also maintains collaborations with several Boston-area firms. Nimbus Therapeutics is working with Lilly on an oral obesity drug, with $55 million near-term and up to $1.3 billion in milestones.
In Cambridge, Repertoire Immune Medicines agreed to a deal with $85 million upfront and up to $1.84 billion total. Repertoire will advance up to three candidates while Lilly oversees clinical development and commercialization.
In 2024, Lilly opened a $700 million research and development center in Fort Point, Boston. The company said the site could eventually employ about 500 workers.
Outlook
Lilly and Kelonia plan to apply the technology to a wider range of cancers and other diseases. The acquisition aims to accelerate development and broaden patient access to cell therapies.
