Lilly & Lox(o)

While New Yorkers have their famed duo of bagels and lox, Eli Lilly is making its own combo with its $8B purchase of Loxo Oncology. The cancer-focused biopharma just recently had its first US approval in Vitrakvi, which can target multiple cancers by focusing on tumor biomarkers instead of the affected tissue area. The deal cements Eli Lilly’s presence in the oncology space, but follows the trend noted in a recent report by EY that says drugmakers have been spending too much on stock buybacks and bolt-on acquisitions instead of megamergers like Takeda/Shire and BMS/Celgene. Loxo stockholders should be pretty happy with the deal—when Loxo shares went public in 2014 they cost $13, and Eli Lilly will be purchasing them for $235 a pop.

Not a fish story

Amarin—a clinical stage biopharma—was said to be in hot waters when a recent, large study showed omega-3 supplements have no heart health benefits. That’s because Amarin’s Vascepa is derived from fish oil, a common source of omega-3, which led critics to liken it to snake oil. But the company didn’t think anything was fishy with their product and so it waited until the results of its REDUCE-IT study came in. The results were announced Monday and, sure enough, Vascepa lowers the risk of adverse cardiovascular events by 25%. However, it may have increased the risk of cardiovascular events in Amarin’s investors, seeing as the company’s stock has been skyrocketing—shares increased by 300% on Monday alone.

Secrets that don’t stay secret

Sometimes you want to get a head start when starting a new company. And sometimes you get caught by the feds for stealing trade secrets. Former GSK scientist Yu Xue pleaded guilty to conspiring to do just that when starting her own biopharmaceutical company in China while still employed by the pharma giant. Prosecutors say Xue transferred documents related to products under development, research data, as well as GSK’s R&D and manufacturing processes to her colleagues in China. Xue, on top of serving up to 10 years in prison, could also be forced to pay restitution to GSK. The court graciously capped that at a reasonable number for a single person to pay, just $2B. Fun fact: that’s larger than the GDP of 26 nations according to the World Bank.

Have your cake and eat it too

PM Theresa May wants the UK to remain in the European Medicines Agency post-Brexit. She’s essentially arguing that allowing the UK to contribute will be beneficial due to the nation’s prestigious universities and its regulatory body which assesses more medicines than any EU member. Staying in would mean UK patients get faster access to newly approved EMA medicines. But being part of the agency would mean following its rules, paying dues, and possibly being subject to its legal authority via the European Court of Justice instead of national UK courts. That’s a big no-no for May and pro-Brexit factions in the UK, so they’re trying to avoid that part of the deal. British biopharma is behind May’s stance—they still want some cake from this Great British Break Off.

Adding CAR-T to the shopping cart

How about some exciting, multi-billion dollar deals to spice up the first quarter? First, Sanofi acquired Bioverativ, a hemophilia-focused biopharmaceutical company that spun out of Biogen last February. Since losing patent protection, Sanofi has seen flagging revenue from their flagship Lantus products—which occupy the #4 and #15 spots on IQVIA’s list of Top Medicines by Invoice Spending—and they’re hoping Bioverativ can give their treatment portfolio a boost. Similarly, Celgene boosted their pipeline prospects by acquiring Juno Therapeutics, who have a promising CAR-T candidate expected to be FDA-approved in 2019. Celgene also recently bought Impact Biomedicines, all part of a strategy to preemptively address profit losses when their blood cancer drug Revlimid goes off-patent in a few years.