Eli Lilly Steals the Spotlight at JPM 2025 with $2.5 Billion Power Move Acquisition
Eli Lilly and Company announced the acquisition of Scorpion Therapeutics Inc. for up to USD$ 2.5 billion. This acquisition grants Lilly the development rights to Scorpion’s PI3Kα inhibitor program, STX-478, a once-daily oral, mutant-selective PI3Kα inhibitor currently undergoing a Phase 1/2 clinical trial for breast cancer and other advanced solid tumors.
Scorpion’s Plans for New Spinoff Company Focused on Precision Medicine Development Following Transaction Completion
Under the terms of the agreement, Eli Lilly will acquire Scorpion Therapeutics through an upfront cash payment and subsequent payments tied to regulatory and sales milestones. As part of the transaction, Scorpion will spin off a new independent entity to hold its employees and non-PI3Kα pipeline assets.
This new company, which will be owned by Scorpion’s current shareholders with Lilly holding a minority equity interest, will be led by Dr. Adam Friedman and the current Scorpion management team. The company will focus on discovering and delivering a portfolio of precision medicines to patients, leveraging Scorpion’s discovery capabilities and its non-PI3Kα pipeline of medicines.
“Lilly has advanced scientific breakthroughs for some of the most difficult-to-treat cancers,” said Adam Friedman, M.D., Ph.D., president and chief executive officer of Scorpion. “We believe Lilly’s global capabilities and strategic commitment to patients with breast cancer will accelerate our goal of developing STX-478 to improve outcomes for the many patients with solid tumors driven by PI3Kα mutations. This acquisition is a testament to the expertise of the Scorpion team and our drug discovery capabilities, which will become the foundation of our new company.”
The transaction is subject to standard closing conditions. Upon completion, Eli Lilly will account for it in accordance with Generally Accepted Accounting Principles (GAAP) and incorporate it into its financial results and future financial guidance.
STX-478 Targets PI3Kα Mutations in HR-Positive HER2-Negative Breast Cancer with Improved Efficacy and Safety
In patients with hormone receptor (HR)-positive and HER2-negative breast cancer, 30% to 40% have PI3Kα mutations that drive tumor growth and drug resistance. Current PI3Kα-targeted treatments have limitations and often cause significant side effects. The development of STX-478 offers a more effective and safer treatment option to these unmet needs.
STX-478 selectively targets PI3Kα in cancer cells, reducing its impact on healthy cells and addressing the limitations of existing PI3Kα-targeting drugs. This precision targeting enhances drug tolerance, especially when used alongside standard therapies. As the PI3Kα inhibitor landscape continues to evolve, several companies are developing competitive treatments to address these needs. Gilead’s Idelalisib and Copiktra, sold by Verastem to Secura Bio in 2020, are available on the market, but their use often faces limitations due to side effects and resistance.
“PI3Kα mutations occur in a meaningful proportion of hormone-positive breast cancers, and there is significant unmet need for new treatment options that effectively and safely target this pathway,” said Jacob Van Naarden, executive vice president and president of Lilly Oncology. “The selectivity profile of STX-478 has led to a differentiated clinical profile, enabling use in combinations with standard-of-care therapies to potentially deliver meaningful impact in earlier treatment settings when there is the best opportunity to improve outcomes for patients.
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