Lilly to Acquire Ajax in $2.3 Billion Deal

Eli Lilly and Company has announced a definitive agreement to acquire Ajax Therapeutics, a move aimed at strengthening its oncology pipeline with a next-generation treatment for blood cancers. The deal, valued at up to $2.3 billion in cash, includes an upfront payment along with milestone-based payouts tied to clinical and regulatory achievements.

The acquisition centers on Ajax’s lead investigational asset, AJ1-11095, a once-daily oral therapy currently being studied in a Phase 1 clinical trial known as AJX-101. The drug is being developed for patients with myelofibrosis, a serious form of blood cancer, particularly those who have previously been treated with existing JAK2 inhibitors but experienced limited or diminishing benefits.

Unlike currently approved treatments, which target the Type I conformation of the JAK2 protein, AJ1-11095 is designed as a first-in-class Type II JAK2 inhibitor. This distinction is considered significant because many patients discontinue existing therapies due to lack of sustained response or resistance over time. By selectively targeting the Type II conformation, AJ1-11095 aims to deliver deeper and more durable efficacy, potentially offering a new therapeutic option for patients who no longer respond to standard treatments.

The Phase 1 study for AJ1-11095 began in late 2024, with dose selection expected in 2026. Early development efforts have focused on evaluating safety, tolerability, and preliminary signs of clinical activity. Lilly anticipates advancing the therapy into later-stage trials following the release of proof-of-concept data expected later this year.

Executives from both companies expressed optimism about the transaction. Lilly highlighted its longstanding relationship with Ajax as a strategic investor and emphasized its confidence in the drug’s potential to improve outcomes for patients with myeloproliferative neoplasms (MPNs), including myelofibrosis and polycythemia vera. The company also underscored its expertise in hematologic cancers as a key factor in accelerating the drug’s development.

Ajax’s leadership noted that the company was founded to build on scientific advances aimed at developing more potent and selective JAK2 inhibitors. With a focused team and strong academic collaboration, Ajax successfully advanced AJ1-11095 into early clinical testing. Company executives expressed confidence that Lilly’s global scale and development capabilities would help bring the therapy to patients more quickly.

The transaction remains subject to customary closing conditions, including regulatory clearance under U.S. antitrust laws. Upon completion, the acquisition is expected to be incorporated into Lilly’s financial reporting in accordance with standard accounting practices.