Lilly, known for insulins like Humalog, has emphasized oncology growth over the past several years, and one of its top-selling products is the cancer treatment Alimta. Eli Lilly and Co. will pay $235 for each share of Stamford, Connecticut-based Loxo. That's a 68 percent premium to the company's Friday closing price of $139.87.
The deal is expected to close by the end of the first quarter. Lilly's announcement was the second big pharmaceutical acquisition announced in the new year. It follows a $74-billion acquisition of Celgene by Bristol-Myers Squibb announced last week.
Shares of Eli Lilly, based in Indianapolis, fell nearly 3 percent to $111.39 in Monday premarket trading.