Eli Lilly Acquires Scorpion Therapeutics for Up to $2.5 Billion to Bolster Oncology Pipeline

Acquisition Details:
Eli Lilly is acquiring Scorpion Therapeutics for up to $2.5 billion, with an upfront payment and subsequent payments based on regulatory and sales milestones13.

Focus on STX-478:
The acquisition primarily targets Scorpion's PI3Kα inhibitor program, STX-478, a mutant-selective PI3Kα inhibitor in Phase 1/2 clinical trials for breast cancer and other solid tumors13.

Scorpion's Background:
Scorpion Therapeutics was co-founded by Keith Flaherty, who previously co-founded Loxo Oncology, which was acquired by Eli Lilly in 2019 for $8 billion15.

Spin-Off:
Non-PI3Kα assets from Scorpion will be spun into a new entity, with Lilly holding a minority stake and current Scorpion shareholders owning the majority13.

Potential Impact:
STX-478 could address 30-40% of hormone-positive breast cancer cases, leveraging Lilly's expertise in breast cancer to advance the drug3.

Clinical Data:
STX-478 has shown a 23% overall response rate (ORR) in Phase 1 trials, compared to Lilly's discontinued LOXO-783, which had a 3% ORR1.

Sources:

1. https://www.oncologypipeline.com/apexonco/lilly-buys-another-pi3ka-inhibitor

3. https://www.prnewswire.com/news-releases/lilly-to-acquire-scorpion-therapeutics-mutant-selective-pi3k-inhibitor-program-302349242.html

5. https://www.scorpiontx.com/news/scorpion-therapeutics-debuts-with-108m-to-put-the-sting-in-cancer/