Eli Lilly Secures Experimental Cancer Therapy from Scorpion in Up-to-$2.5 Billion Deal
Acquisition Bolsters Oncology Pipeline with Early-Stage Oral Treatment STX-478
Eli Lilly announced its plan to acquire an experimental cancer therapy from Scorpion Therapeutics for a total consideration of up to $2.5 billion in cash, aiming to significantly expand its oncology pipeline.
The core asset in the agreement is STX-478, an oral treatment currently undergoing early-stage clinical trials. This therapy is being developed for use against breast cancer and other advanced solid tumors.
The deal structure includes an upfront payment to Scorpion, followed by contingent payments tied to the achievement of specified regulatory approvals and subsequent sales milestones.
As part of the transaction, Scorpion Therapeutics will establish a new, independent entity to house all its pipeline assets and employees not related to the PI3K pathway. This newly formed company will be owned by Scorpion’s existing shareholders, with Eli Lilly also holding a minority equity stake.
A representative from Lilly Oncology stated that the company looks forward to capitalizing on the progress made by the Scorpion team and combining it with Lilly’s established expertise in breast cancer to rapidly advance STX-478 through development.
