Is acquiring ARMO Biosciences a wise move?

ARMO Biosciences loss in the fiscal year 2017 has increased compared to the fiscal year 2016. I don't know why Lilly is acquiring this loss making company. Will this acquisition really benefit Lilly?
https://news.alphastreet.com/eli-lilly-acquires-armo-biosciences-strengthens-oncology-portfolio/

 

They bought ARMO for the pipeline, definitely potential for a massive market if the lead drug candidate gets the green light.

 

How did that work out with Imclone?

 

Took the words out of my mouth. What was so amusing about that acquisition was the absolute jumping ship of all the intellectual property to other companies. All that was left was a bunch of clueless Sales, Marketing, and Project Managers. Same will happen with this. Watch and learn...watch and learn.

 

Worked pretty well for the $2 bio acquisition of ICOS (Cialis).

 

False analogy. Approval was all but guaranteed, until we screwed up manufacturing, and delayed launch for a couple of years.

That is not the case with an oncology biotech, as they are completely at opposite ends of the spectrum.

 

The annual "One-time only write off event". To mask the widening losses via accounting tricks.

 

Rinse, repeat...Dave's dead meat.