Loxo is working to develop medicines to treat patients whom have cancer from single-gene abnormalities.
Deal-making in the biotech space has heated up as more companies look to acquire others to expand on product lines. For example, Bristol-Myers Squibb said it would buy Celgene in a $74 billion deal. Eli Lilly also completed another deal related to cancer treatments in June when it closed a $1.6 billion deal to buy out Armo Biosciences.
Eli Lilly’s chief financial officer, Josh Smiley, has said that the lower tax rate as a result of the new tax law helped the biopharm provider compete with companies outside the U.S. on deals for smaller firms.
Further fueling the biotech rally on Monday, shares of Insmed Incorporated (NasdaqGS: INSM) surged 42.7%. The stock was strengthening after the company said it expects its drug Arikayce to generate $9.8 million over the fourth quarter.
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