Lilly strikes $3.25B buyout of Kelonia Therapeutics in high-stakes biotech bet

Eli Lilly agreed to acquire Kelonia Therapeutics for $3.25 billion, with potential additional payments tied to clinical, regulatory, and commercial milestones. Kelonia—formerly Elcano Therapeutics—had survived on about $60 million over five years and nearly ran out of cash on three occasions, aided by Venrock’s early backing. The deal highlights the volatile, milestone-driven journey of biotech startups and the race to capitalize on cell-therapy advances.