Eli Lilly announces $7 billion acquisition of Kelonia: advancing "in vivo CAR-T" frontier, leading the revolution in gene therapy

Pharmaceutical giant Eli Lilly announced it will spend up to $7 billion to acquire private biotech company Kelonia Therapeutics, aiming to obtain a next-generation CAR-T (a cancer immunotherapy) technology that does not require immune cells to be modified outside the body, and to gain a leading edge in the "in vivo gene therapy" track.

According to statements from both parties, Eli Lilly will pay Kelonia shareholders $3.25 billion in cash upfront, with the remaining amount linked to technology development milestones.

Kelonia's current core project targets multiple myeloma (with a market size of about $23.5 billion in 2023, expected to grow to $33.2 billion by 2030). The targeted patient group is those who are non-responsive or have relapsed after existing treatments, and clinical trials in humans have already begun.

Jacob Van Naarden, President of Lilly's oncology division, stated that currently "only a small subset of eligible patients can receive" CAR-T therapy, while Kelonia's technology "has the potential to provide rapid and durable treatment responses in a more convenient form, thereby changing this situation."

Lilly’s share price has dropped 14% so far this year through last Friday. After the announcement, the stock price stayed basically flat, reflecting a generally neutral market attitude toward the deal.

"In vivo CAR-T": Simplifying the process, breaking traditional limitations

The traditional CAR-T therapy process is highly complex: immune cells must first be extracted from the patient, genetically modified outside the body, and then returned to the patient after chemotherapy preconditioning. This process is not only time-consuming and costly to manufacture, but also limits large-scale adoption.

Kelonia’s "in vivo" CAR-T approach bypasses these steps. The technology completes gene modification of immune cells directly within the patient via a single infusion, eliminating the need for ex vivo procedures or chemotherapy preconditioning. This "off-the-shelf" feature could theoretically greatly reduce treatment complexity and improve patient access.

Earlier in February, Lilly had already invested in similar technology—acquiring Orna Therapeutics for up to $2.4 billion. Orna is also focused on "in vivo" CAR-T, targeting autoimmune diseases such as rheumatoid arthritis. With the acquisition of Kelonia, Lilly further strengthens its strategic depth in this emerging therapeutic area.

First indication targets multiple myeloma

Kelonia's first indication is set for multiple myeloma—a blood cancer affecting white blood cells. According to the American Cancer Society, about 36,000 people in the U.S. are expected to be diagnosed with it this year, with nearly 11,000 deaths.

According to Bloomberg industry research, the multiple myeloma treatment market was about $23.5 billion in 2023, projected to reach $33.2 billion by 2030. This large and continuously expanding market has made it a key battleground for major pharmaceutical companies.

RBC Capital Markets analyst Trung Huynh pointed out in his research report that the Kelonia deal "puts Lilly at the forefront of a potentially transformative technology, with broad application prospects beyond multiple myeloma."

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