Lilly to Acquire Kelonia Therapeutics to Advance In Vivo CAR T-Cell Therapies

Eli Lilly and Company has entered into a definitive agreement to acquire Kelonia Therapeutics in a deal valued at up to $7 billion, marking a significant expansion of Lilly’s capabilities in genetic medicine and in vivo cell therapy.

The transaction includes an upfront payment of $3.25 billion, with additional milestone-based payments tied to clinical, regulatory, and commercial achievements. The acquisition is expected to close in the second half of 2026, pending customary regulatory approvals.

At the center of the deal is Kelonia’s proprietary in vivo gene placement system (iGPS), a lentiviral-based platform designed to generate chimeric antigen receptor (CAR) T-cell therapies directly within a patient’s body.¹ Unlike traditional ex vivo CAR T approaches, which require complex cell extraction, modification, and reinfusion processes, Kelonia’s technology aims to streamline manufacturing and broaden patient access.

Kelonia’s lead candidate, KLN-1010, is currently being evaluated in a Phase 1 clinical trial for relapsed or refractory multiple myeloma.² The investigational therapy is a one-time intravenous treatment designed to generate anti-BCMA CAR T cells in vivo, targeting malignant plasma cells expressing the BCMA protein.

Early clinical data presented during the plenary session at the American Society of Hematology Annual Meeting 2025 provided initial validation of the platform, demonstrating encouraging tolerability and signs of efficacy. The findings suggest the potential for KLN-1010 to reduce or eliminate the need for preconditioning chemotherapy and individualized manufacturing, two longstanding barriers in CAR T-cell therapy deployment.

Jacob Van Naarden, executive vice president and president of Lilly Oncology, emphasized the broader implications of the acquisition, noting that while autologous CAR T-cell therapies have improved outcomes in hematologic malignancies, access remains limited due to logistical and safety challenges. He indicated that Kelonia’s in vivo approach could offer a more scalable, off-the-shelf alternative capable of delivering rapid and durable responses.

Kelonia CEO Kevin Friedman highlighted the company’s progress in achieving deep remissions in multiple myeloma with reduced complexity and cost compared with conventional CAR T approaches. He added that integration with

Lilly’s development and commercialization infrastructure could accelerate the platform’s application beyond hematologic cancers into a wider range of diseases.

The acquisition aligns with Lilly’s broader strategy to invest in next-generation modalities, including genetic medicines and cell therapies, as part of its oncology pipeline expansion. By incorporating Kelonia’s lentiviral delivery technology, Lilly aims to advance a new class of in vivo cell therapies that could transform treatment paradigms across oncology and other serious conditions.

Legal counsel for Lilly is being provided by Kirkland & Ellis LLP, while Kelonia is advised by Jefferies LLC and Goodwin Procter LLP.

If completed, the deal would represent one of the larger recent investments in in vivo gene therapy, underscoring growing industry interest in simplifying and scaling advanced cell therapies for broader patient populations.

References

1. Grinstein, J.D. et al. (2023 May 17). ASGCT News: Kelonia Lentiviral Particles May Solve In Vivo Delivery Hurdles for CAR T Cells: Kelonia reports that its in vivo Gene Placement System (iGPS) particles efficiently and specifically deliver CAR molecules to T cells, resulting in long-term tumor clearance without toxicity or chemotherapy in mice and non-human primates. Sage Journals. https://journals.sagepub.com/doi/10.1089/genedge.5.1.73?cf-mal-redirected=true&#tab-contributors

2. A Study to Evaluate a Novel Gene Therapy in Patients With Relapsed and Refractory Multiple Myeloma (inMMyCAR). National Library of Medicine. ClinicalTrials.gov. https://clinicaltrials.gov/study/NCT07075185