<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0306</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2018-06-19</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001581720</issuerCik>
        <issuerName>Loxo Oncology, Inc.</issuerName>
        <issuerTradingSymbol>LOXO</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001612312</rptOwnerCik>
            <rptOwnerName>Bilenker Joshua H.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O LOXO ONCOLOGY, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>281 TRESSER BOULEVARD, 9TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>STAMFORD</rptOwnerCity>
            <rptOwnerState>CT</rptOwnerState>
            <rptOwnerZipCode>06901</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
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            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>President &amp; CEO</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

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                </natureOfOwnership>
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                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F16"/>
            </exerciseDate>
            <expirationDate>
                <value>2023-11-14</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>7500</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>108932</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The transactions reported on this Form 4 were effected pursuant to a 10b5-1 trading plan adopted by the reporting person.</footnote>
        <footnote id="F2">Represents the aggregate of sales effected on the same day at different prices.</footnote>
        <footnote id="F3">Represents the weighted average sales price per share. The shares sold at prices ranging from $175.60 to $176.59 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F4">Represents the weighted average sales price per share. The shares sold at prices ranging from $176.64 to $177.44 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F5">Represents the weighted average sales price per share. The shares sold at prices ranging from $177.67 to $178.56 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F6">Represents the weighted average sales price per share. The shares sold at prices ranging from $177.00 to $177.99 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F7">Joshua H. Bilenker, Trustee for the Joshua H. Bilenker 2017 GRAT u/a DTD 06/16/17 previously reported as held directly pursuant to Rule 16a-13.</footnote>
        <footnote id="F8">Represents the weighted average sales price per share. The shares sold at prices ranging from $178.03 to $179.00 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F9">Represents the weighted average sales price per share. The shares sold at prices ranging from $179.20 to $180.15 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F10">Represents the weighted average sales price per share. The shares sold at prices ranging from $180.23 to $180.34 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F11">Represents the weighted average sales price per share. The shares sold at prices ranging from $178.08 to $179.07 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F12">Represents the weighted average sales price per share. The shares sold at prices ranging from $179.09 to $180.02 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F13">Represents the weighted average sales price per share. The shares sold at prices ranging from $180.85 to $180.90 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F14">Represents the weighted average sales price per share. The shares sold at prices ranging from $178.50 to $179.48 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F15">Represents the weighted average sales price per share. The shares sold at prices ranging from $179.50 to $180.04 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.</footnote>
        <footnote id="F16">The options have fully vested and are immediately exercisable.</footnote>
        <footnote id="F17">Option exercises that were previously reported by the Reporting Person were attributed to a single option grant in each prior Form 4 filed by the Reporting Person with the Securities and Exchange Commission.  This Form 4 combines two option grants with identical terms and reports the respective option exercises in the aggregate on one row.  The shares reported in this column as beneficially owned following the reported transaction represents the outstanding shares underlying both option grants.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Jennifer Burstein, by power of attorney</signatureName>
        <signatureDate>2018-06-21</signatureDate>
    </ownerSignature>
</ownershipDocument>
