Lilly to Acquire Kelonia, Pioneering in vivo Gene Delivery Technology

Eli Lilly and Company is set to acquire Kelonia Therapeutics, Inc., a clinical-stage biotechnology company, and its proprietary in vivo gene placement system (iGPS®). Kelonia's lead program, KLN-1010, is a novel lentiviral in vivo CAR-T therapy currently in Phase 1 for relapsed/refractory multiple myeloma. This acquisition aims to expand Lilly's genetic medicine capabilities with potential broad applicability.

The deal will see Kelonia shareholders receive up to $7.00 billion, including an upfront payment of $3.25 billion, and subsequent payments upon achieving certain milestones. Kelonia's in vivo gene delivery technology uses specially engineered lentiviral-based particles designed to enter T-cells inside the body, enabling the patient's body to generate chimeric antigen receptor T-cell (CAR-T) therapies. The lead program, KLN-1010, is an investigational, one-time intravenous gene therapy that generates anti-B-cell maturation antigen (BCMA) CAR-T cells targeting the BCMA protein expressed on multiple myeloma cells.

The early clinical data for KLN-1010 presented at the 2025 ASH Annual Meeting show promising tolerability and initial clinical validation. It offers the potential to simplify and improve the treatment of multiple myeloma by eliminating the complexities of ex vivo patient-specific cell therapy manufacturing and pre-administration chemotherapy. The acquisition reflects Lilly's commitment to advancing new discoveries to solve some of the world's most significant health challenges.

The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in the second half of 2026. In the deal, Kirkland & Ellis LLP is acting as legal counsel for Lilly, while Jefferies LLC is serving as a financial advisor and Goodwin Procter LLP as legal counsel for Kelonia. The acquisition aligns with Lilly's goal of creating a healthier world through innovative clinical trials and ensuring accessible and affordable medicines.