Does Eli Lilly's $8 Billion Splurge Make Array BioPharma a Buy Now?

A market meltdown at the end of 2018 brought back another round of biotech buyouts, and the latest from Eli Lilly (NYSE:LLY) was a whopper. Lilly agreed to purchase Loxo Oncology(NASDAQ:LOXO) for $8 billion, a 68% premium over its recent price.

The team at Loxo deserves high praise for launching a new cancer therapy around five years after it entered proof-of-concept studies. It's so impressive that many investors don't realize that Array BioPharma (NASDAQ:ARRY) discovered Loxo's drugs and quite a few others.