Eli Lilly to Acquire Scorpion Therapeutics’ Cancer Therapy for Up to $2.5 Billion

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Prime Highlights:

Eli Lilly to acquire Scorpion Therapeutics’ experimental cancer therapy, STX-478, for up to $2.5 billion.

STX-478 is a PI3K inhibitor currently being tested for breast cancer and advanced solid tumors.

The deal includes an upfront payment, plus milestone payments tied to regulatory and sales achievements.

Key Background:

Eli Lilly and Co. (NYSE: LLY) announced that it has entered into an agreement to acquire Scorpion Therapeutics’ experimental cancer therapy for up to $2.5 billion in cash. This strategic acquisition is aimed at expanding Lilly’s oncology portfolio, particularly in the treatment of various advanced cancers.

Under the terms of the deal, Lilly will obtain Scorpion’s oral therapy, STX-478, which is currently undergoing early-stage clinical trials for breast cancer and other solid tumors. STX-478 is a PI3K inhibitor, a class of drug designed to selectively target the PI3K protein, which plays a critical role in the development and progression of certain cancers. This acquisition represents a significant step in Lilly’s ongoing commitment to developing innovative cancer treatments, as the company continues to strengthen its oncology pipeline.

Jacob Van Naarden, president of Lilly Oncology, expressed enthusiasm about the collaboration, stating, “We look forward to leveraging the great work of the Scorpion team to date, along with Lilly’s deep expertise in breast cancer, to further advance STX-478 with speed and focus.” The acquisition is structured with an upfront payment, alongside future payments tied to achieving regulatory and commercial milestones.

As part of the deal, Scorpion Therapeutics will create a new independent entity to retain its non-PI3K pipeline assets and employees. The new company will be owned by Scorpion’s current shareholders, with Lilly taking a minority equity stake. This arrangement allows Scorpion to continue advancing its broader oncology portfolio while aligning its expertise with Lilly’s resources and infrastructure.

This acquisition aligns with Eli Lilly’s broader strategy to strengthen its leadership in oncology, a rapidly growing therapeutic area. By acquiring STX-478, Lilly aims to enhance its ability to offer targeted treatments for patients with advanced cancers, especially those with limited therapeutic options. The agreement is subject to customary closing conditions, and once completed, it is expected to bolster Lilly’s competitive position in the oncology market.