Eli Lilly and Co (NYSE:LLY) has agreed to acquire private clinical-stage biotechnology firm Kelonia Therapeutics in a deal aimed at expanding its capabilities in genetic medicines, the companies announced on Monday.
The transaction centers on Kelonia’s in vivo gene delivery platform, known as iGPS, which uses engineered lentiviral-based particles designed to modify T-cells inside the body. The approach is intended to enable the production of chimeric antigen receptor (CAR) T-cells without the need for the complex ex vivo manufacturing process typically associated with current CAR-T therapies.
Kelonia’s lead program, KLN-1010, is an investigational one-time intravenous therapy designed to generate anti-BCMA CAR-T cells in patients. It is currently being evaluated in a Phase 1 study for relapsed or refractory multiple myeloma, a blood cancer characterized by malignant plasma cells.
Early clinical findings from the program were presented at the 2025 American Society of Hematology Annual Meeting plenary session, where investigators reported initial signs of tolerability and encouraging responses.
Lilly said the acquisition supports its efforts to develop new approaches in genetic medicine and cell therapy.
"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,” said Jacob Van Naarden, executive vice president and president of Lilly Oncology and head of corporate business development
“We look forward to working together with the Kelonia team to rapidly advance KLN-1010 to address patient need and recognize the full potential of their platform in other conditions where patients may benefit."
Under the terms of the agreement, shareholders of Kelonia Therapeutics are eligible to receive up to $7 billion in cash, including an upfront payment of $3.25 billion, with additional payments tied to clinical, regulatory, and commercial milestones.
The deal is expected to close in the second half of 2026.