Lilly buying cancer-research firm for $64M

July 8, 2008
Eli Lilly and Co. has agreed to spend $64 million to acquire SGX Pharmaceuticals Inc., a San Diego-based biotech firm developing cancer drugs.

Indianapolis-based Lilly and SGX have been collaborating since 2003 on development of cancer drugs. SGX provided X-ray crystallography technology to determine the structure of cancer targets Lilly was trying to hit with new drugs.

The acquisition will allow Lilly to integrate SGX's technology into its drug discovery efforts. It also will give Lilly access to a portfolio of pre-clinical oncology compounds.

"We will leverage the combined resources of both companies to strengthen our structural biology capabilities and seek out innovative therapies for patients," Dr. Steven M. Paul, Lilly's executive vice president of science and technology, said in a statement.

The transaction is expected to close in the second half of 2008. Closing is contingent upon approval by SGX shareholders, clearance under the Hart-Scott-Rodino Antitrust Improvements Act and certain other conditions.

Lilly said in a press release that the acquisition would reduce its earnings, but said it was premature to say by how much.
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