Eli Lilly to Acquire Kelonia Therapeutics in $7 Bn Deal to Boost Cancer Drug Pipeline

Kelonia is developing an in vivo CAR-T approach that reprograms patients’ T-cells inside the body to target cancer. This differs from current ex vivo CAR-T treatments, which involve collecting cells, engineering them in a lab, and then reinfusing them into the patient.

Global drugmaker Eli Lilly has entered into a definitive agreement to acquire clinical-stage biotech Kelonia Therapeutics, underscoring a major move into next-generation gene therapy to advance cancer treatment.

Kelonia has been developing a proprietary in vivo gene placement system (iGPS) that uses engineered lentiviral particles to selectively target T cells inside the body. This approach has enabled the patient’s own body to produce CAR-T therapies internally, potentially removing the need for complex external cell manufacturing.

As per reports, Lilly has acquired Kelonia in a deal worth up to $7.0 billion. This includes an upfront payment of $3.25 billion, with additional payments linked to clinical, regulatory, and commercial milestones.

Its lead candidate, KLN-1010, is a one-time intravenous gene therapy designed to produce anti-BCMA CAR-T cells that target multiple myeloma. Early clinical data presented at the 2025 American Society of Hematology Annual Meeting showed encouraging tolerability and offered early support for the approach.

The therapy could greatly simplify CAR-T treatment by eliminating the need for ex vivo manufacturing and pre-treatment chemotherapy.

"Autologous CAR-T therapies have meaningfully improved outcomes for patients with various cancers, but significant manufacturing, safety, and access barriers mean that only a fraction of eligible patients actually receive them. Kelonia's in vivo platform has the potential to change that by delivering rapid, durable responses in a far simpler, off-the-shelf format," said Jacob Van Naarden, executive vice president and president of Lilly Oncology and head of corporate business development.

"The early clinical data for KLN-1010 are highly encouraging, both as a potential step forward for patients with multiple myeloma and as proof of concept for Kelonia's platform. We look forward to working together with the Kelonia team to rapidly advance KLN-1010 to address patient needs and recognize the full potential of their platform in other conditions where patients may benefit," said Jacob.

"Kelonia's leadership in advancing the immense promise of in vivo cell therapy is unmatched, extending its reach and impact beyond the traditional boundaries of personalized medicine," said Kevin Friedman, chief executive officer of Kelonia.

"We have demonstrated the ability to achieve deep multiple myeloma remissions with significantly reduced complexity and cost relative to ex vivo CAR T-cell approaches. In combination with Lilly's strengths, our in vivo iGPS platform is positioned to broaden the reach of cell therapy beyond the current CAR-T landscape in hematologic malignancies and to transform treatment across a far wider range of cancers and other serious diseases, he added.

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