Eli Lilly and Company announced on April 21, 2026, that it has entered into a definitive agreement to acquire Kelonia Therapeutics, a clinical-stage biotechnology firm specializing in in vivo gene delivery. The transaction is valued at a total of up to $7 billion, comprising a $3.25 billion upfront cash payment and up to $3.75 billion in potential clinical, regulatory, and commercial milestone payments. The deal is expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals under the Hart-Scott-Rodino Act.
The acquisition provides Lilly with full access to Kelonia’s proprietary in vivo Gene Placement System (iGPS). This technology utilizes specially engineered lentiviral-based particles and lipid nanoparticle (LNP) components to selectively enter and reprogram T-cells directly within a patient’s body. By enabling the generation of chimeric antigen receptor (CAR) T-cells in vivo, the platform is designed to eliminate the need for the complex ex vivo manufacturing processes, centralized logistics, and pre-administration lymphodepleting chemotherapy required by current autologous CAR-T therapies.
Central to the acquisition is Kelonia’s lead program, KLN-1010, an investigational one-time intravenous therapy for relapsed or refractory multiple myeloma. KLN-1010 is designed to generate anti-B-cell maturation antigen (BCMA) CAR-T cells directly in the bloodstream. Early clinical results from the program’s Phase 1 study were recently highlighted during a plenary session at the 2025 American Society of Hematology (ASH) Annual Meeting, where investigators reported initial signs of tolerability and encouraging clinical responses in early cohorts.
Jacob Van Naarden, Executive Vice President and President of Lilly Oncology, stated that the acquisition reflects the company’s commitment to scaling genetic medicines and addressing the limitations of current cell therapy models. Van Naarden noted that Kelonia’s platform offers a potential off-the-shelf format that could significantly broaden patient access to transformative treatments. Kevin Friedman, Ph.D., Chief Executive Officer and Founder of Kelonia Therapeutics, emphasized that the partnership with Lilly provides the resources necessary to accelerate the development of KLN-1010 and explore the platform’s application in other therapeutic areas, including immunology and neurology.
This transaction follows a period of significant M&A activity for Eli Lilly in the genetic medicine space. In the first half of 2026, Lilly has completed or announced several major buyouts, including the acquisitions of Centessa Pharmaceuticals and Orna Therapeutics. The Kelonia deal represents one of the largest acquisitions of a venture-backed private biotechnology company in recent years. For the transaction, Kirkland & Ellis LLP is serving as legal counsel to Lilly, while Jefferies LLC is acting as financial advisor and Goodwin Procter LLP as legal counsel to Kelonia.