Eli Lilly paid up to $7 billion for Kelonia Therapeutics, adding the company’s iGPS gene therapy delivery platform to a cell therapy portfolio that didn’t exist three months ago.
Lilly had entered the CAR T arena in February. The Kelonia deal pivots toward in vivo delivery, where gene therapy is administered directly rather than through modified cells outside the body. What Lilly actually gets: iGPS, a gene therapy delivery platform, not a late-stage clinical asset. The $7 billion price tag will raise eyebrows.
UCB bought Neurona Therapeutics for $650 million upfront and up to $500 million in milestone payments, a deal worth up to $1.15 billion. The focal point is NRTX-1001, a single-dose cell therapy in Phase 1/2 trial for epilepsy. A Phase 1/2 asset for $1.15 billion total is an aggressive early bet.
On the IPO side, Kailera raised $625 million last week, breaking biopharma’s all-time record. Moderna’s 2018 IPO falls to second place.
President Trump signed an executive order directing the FDA to issue Commissioner’s National Priority Vouchers to breakthrough-designated psychedelic drugs, which could cut review timelines from 10-12 months to 1-2 months. Analysts called psychedelic therapies the “key next wave” of mental health therapies.
Denali Therapeutics received FDA approval for Avlayah in Hunter syndrome. CEO Ryan Watts called it “the greatest professional moment of my life.”
Lilly’s two deals in three months answer one question. They’re buying speed. Whether iGPS justifies $7 billion closes when the deal does.
Diana Kowalski