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LLY Expands Oncology Pipeline With $2.3B Ajax Therapeutics Acquisition
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Key Takeaways
Lilly will acquire Ajax Therapeutics for up to $2.3B, marking LLY's second deal this month.
Ajax's lead asset, AJ1-11095, targets JAK2 with potential for deeper, durable responses in MPNs.
Lilly aims to advance AJ1-11095 into registrational studies, expanding its oncology pipeline.
Eli Lilly and Company (LLY - Free Report) announced a definitive agreement to acquire Ajax Therapeutics, a clinical-stage biotech focused on developing next-generation JAK inhibitors for the treatment of myeloproliferative neoplasms (MPNs), marking the company’s second acquisition this month.
Per the deal, Lilly will pay Ajax shareholders up to $2.3 billion in cash, which includes an undisclosed upfront consideration and potential milestone-based payments tied to clinical and regulatory achievements. The transaction is subject to customary closing conditions.
Lilly’s Ajax buyout comes shortly after it announced a $7 billion deal for Kelonia Therapeutics, earlier this month. Lilly has already executed six M&A transactions in 2026 alone, with a significant portion focused on oncology, including earlier agreements with in vivo CAR-T developers such as Orna Therapeutics.
Year to date, shares of LLY have declined 19.2% compared with the industry’s 6.5% decline.
Image Source: Zacks Investment Research
Ajax Acquisition Adds AJ1-11095 to Lilly’s Oncology Pipeline
With the Ajax acquisition, LLY will acquire Ajax’s lead asset, AJ1-11095. This is an investigational, once-daily oral type II JAK2 inhibitor currently being evaluated in the phase I study, AJX-101, for patients with myelofibrosis who have previously been treated with type I JAK inhibitors.
All approved JAK2 inhibitors for MPNs, including myelofibrosis and polycythemia vera, target the type I form of JAK2 and often lose effectiveness over time. On the other hand, AJ1-11095 aims to deliver deeper and more durable responses than the existing approved JAK2 inhibitors, particularly for patients who develop resistance or lose response to type I JAK2 inhibitors. Early-stage development for the candidate commenced in late 2024, with dose selection anticipated in 2026 and proof-of-concept data expected later in 2026.
Competitive Landscape & Strategic Positioning in MPN Market
Key JAK inhibitors for myelofibrosis currently marketed are Incyte and Novartis’ (NVS - Free Report) Jakafi/Jakavi (ruxolitinib), as well as Bristol Myers Squibb’s (BMY - Free Report) Inrebic (fedratinib). However, Ajax’s approach could offer a differentiated mechanism with potential disease-modifying benefits, addressing a key unmet need in MPNs where durability of response remains a challenge.
Lilly’s acquisition also complements its existing immunology portfolio, which includes the JAK inhibitor Olumiant (baricitinib), already approved for multiple indications such as rheumatoid arthritis and alopecia areata.
The Ajax buyout reflects Lilly’s intent to advance AJ1-11095 into registrational clinical studies by using its own expertise in blood cancer and delivering another new medicine to patients with MPNs.
Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 earnings per share have risen from $2.59 to $2.87. Over the same period, EPS estimates for 2027 have surged from $3.01 to $3.25. CPRX shares have gained 25.5% year to date.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.
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LLY Expands Oncology Pipeline With $2.3B Ajax Therapeutics Acquisition
Key Takeaways
Eli Lilly and Company (LLY - Free Report) announced a definitive agreement to acquire Ajax Therapeutics, a clinical-stage biotech focused on developing next-generation JAK inhibitors for the treatment of myeloproliferative neoplasms (MPNs), marking the company’s second acquisition this month.
Per the deal, Lilly will pay Ajax shareholders up to $2.3 billion in cash, which includes an undisclosed upfront consideration and potential milestone-based payments tied to clinical and regulatory achievements. The transaction is subject to customary closing conditions.
Lilly’s Ajax buyout comes shortly after it announced a $7 billion deal for Kelonia Therapeutics, earlier this month. Lilly has already executed six M&A transactions in 2026 alone, with a significant portion focused on oncology, including earlier agreements with in vivo CAR-T developers such as Orna Therapeutics.
Year to date, shares of LLY have declined 19.2% compared with the industry’s 6.5% decline.
Image Source: Zacks Investment Research
Ajax Acquisition Adds AJ1-11095 to Lilly’s Oncology Pipeline
With the Ajax acquisition, LLY will acquire Ajax’s lead asset, AJ1-11095. This is an investigational, once-daily oral type II JAK2 inhibitor currently being evaluated in the phase I study, AJX-101, for patients with myelofibrosis who have previously been treated with type I JAK inhibitors.
All approved JAK2 inhibitors for MPNs, including myelofibrosis and polycythemia vera, target the type I form of JAK2 and often lose effectiveness over time. On the other hand, AJ1-11095 aims to deliver deeper and more durable responses than the existing approved JAK2 inhibitors, particularly for patients who develop resistance or lose response to type I JAK2 inhibitors. Early-stage development for the candidate commenced in late 2024, with dose selection anticipated in 2026 and proof-of-concept data expected later in 2026.
Competitive Landscape & Strategic Positioning in MPN Market
Key JAK inhibitors for myelofibrosis currently marketed are Incyte and Novartis’ (NVS - Free Report) Jakafi/Jakavi (ruxolitinib), as well as Bristol Myers Squibb’s (BMY - Free Report) Inrebic (fedratinib). However, Ajax’s approach could offer a differentiated mechanism with potential disease-modifying benefits, addressing a key unmet need in MPNs where durability of response remains a challenge.
Lilly’s acquisition also complements its existing immunology portfolio, which includes the JAK inhibitor Olumiant (baricitinib), already approved for multiple indications such as rheumatoid arthritis and alopecia areata.
The Ajax buyout reflects Lilly’s intent to advance AJ1-11095 into registrational clinical studies by using its own expertise in blood cancer and delivering another new medicine to patients with MPNs.
Lilly’s Zacks Rank & Stock to Consider
LLY currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the biotech sector is Catalyst Pharmaceuticals (CPRX - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 earnings per share have risen from $2.59 to $2.87. Over the same period, EPS estimates for 2027 have surged from $3.01 to $3.25. CPRX shares have gained 25.5% year to date.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.