HQ Team
January 14, 2025: Eli Lilly and Company will acquire Scorpion Therapeutics’ investigational cancer drug, currently being evaluated in first- mid-stage trials to treat breast and solid tumours, for $2.5 billion in cash.
The oral therapy acquisition, STX-478, will expand Lilly’s oncology pipeline and could potentially benefit between 30% and 40% of people with hormone-positive breast cancer, according to a statement from Lilly.
According to the deal, Scorpion shareholders could receive up to $2.5 billion in cash, inclusive of an upfront payment and subsequent payments “upon achievement of certain regulatory and sales milestones.”
Scorpion will spin out a new entity to hold its employees and non-PI3Kα pipeline assets. The new, independent company would be owned by Scorpion’s current shareholders with Lilly holding a minority equity interest
P13K inhibitors
The STX-478 therapy is based on PI3K inhibitors — a class of drugs designed to block the activity of specific enzymes called phosphoinositide 3-kinases (PI3Ks). These enzymes play a crucial role in regulating various cellular functions, including cell growth and survival.
Class II PI3Ks regulate cellular functions, including glucose transport, cell migration and survival. Some tumours have higher-than-normal levels of PI3K.
By inhibiting the P13K enzymes, these drugs can promote the death of cancer cells, slow down the growth and multiplication of malignant cells, and disrupt several signalling pathways that cancer cells rely on for survival.
The SRX-478 targets cancerous cells but not the healthy ones. “This approach could potentially offer better disease control through deeper pathway inhibition, as well as improved tolerability,” according to the statement.
New company
“PI3Kα mutations occur in a meaningful proportion of hormone-positive breast cancers, and there is a 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.
“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 new company formed after the acquisition will be led by members of the current Scorpion management team and will focus on discovering and delivering a portfolio of precision medicines to patients, accelerated by Scorpion’s discovery capabilities and non-PI3Kα pipeline of medicines.
“Lilly has advanced scientific breakthroughs for some of the most difficult-to-treat cancers,” said Adam Friedman, MD, PhD, 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 tumours driven by PI3Kα mutations.”
Scorpion’s current pipeline, led by STX-478, our mutant-selective PI3Kα program, consists of three internally discovered clinical product candidates and multiple discovery-stage programs.
