Eli Lilly and Co (NYSE:LLY)’s acquisition of Kelonia Therapeutics is being seen as a positive step for long-term pipeline building, even as the target’s lead assets remain in early clinical development, according to UBS analysts.
The $3.25 billion deal, announced on Monday, is among the largest to date in the in vivo CAR-T space. UBS noted that interest in this emerging modality has been increasing across both oncology and autoimmune diseases, with Lilly already active in the area following its earlier acquisition of Orna Therapeutics.
“This is an early-stage deal that we view as constructive and positive to continue to expand and diversify the pipeline for long-term growth beyond the GLP-1 franchise,” they wrote.
Kelonia’s lead program is a Phase I in vivo BCMA-targeted CAR-T therapy for multiple myeloma. UBS pointed to early clinical data presented in December 2025 showing that all four treated patients achieved minimal residual disease (MRD)-negative responses, with durability observed out to five months in the longest follow-up.
The analysts highlighted that the therapy’s profile could offer meaningful differentiation from existing CAR-T approaches. It is designed as an off-the-shelf treatment and does not require lymphodepleting chemotherapy, while early safety findings showed no high-grade cytokine release syndrome, neurotoxicity, or other severe adverse events.
UBS also pointed out the importance of safety in early datasets, particularly given mixed results reported elsewhere in the field, though it cautioned that comparisons remain limited by small patient numbers and the early stage of development.
Kelonia’s platform uses a lentiviral delivery system, in contrast to some competing in vivo CAR-T programs that rely on lipid nanoparticle technologies. Beyond the lead asset, the company is developing earlier-stage CD19 and BCMA programs spanning oncology and autoimmune indications.
While the analysts acknowledged the limited scale of current data, they indicated that Kelonia’s program ranks among the more compelling early proof-of-concept cases in the in vivo CAR-T space, reinforcing Lilly’s continued push into next-generation cell therapies.
“Acknowledging the field is still very early w/ small patient numbers, we believe the Kelonia program acquired has some of the strongest proof-of-concept to date,” UBS wrote.
Shares of Eli Lilly traded hands at $907 on Tuesday afternoon, down almost 16% so far this year.