Eli Lilly and Company (LLY) has announced its intention to acquire the PI3Ka inhibitor program STX-478 from Scorpion Therapeutics in a deal that could amount to $2.5 billion in cash. STX-478 is an innovative, orally-administered, mutant-selective PI3Ka inhibitor presently undergoing a Phase 1/2 clinical trial for treating breast cancer and other advanced solid tumors.
STX-478 presents the potential to be the next generation of PI3Ka-targeting treatments by selectively acting on cancerous cells while sparing healthy ones, thus addressing a significant limitation of current PI3Ka pathway therapies. This strategy may offer improved disease control through enhanced pathway inhibition and greater tolerability.
According to the agreement's terms, Lilly will acquire Scorpion, and Scorpion's shareholders stand to receive up to $2.5 billion, combining an upfront payment with additional compensation tied to specific regulatory and sales achievements.
As a component of this transaction, Scorpion will create a new separate entity to house its personnel and assets unrelated to the PI3Ka program. This independent company will remain under the ownership of Scorpion's existing shareholders, with Lilly holding a minority stake in the equity.
Dr. Friedman, alongside current management from Scorpion, will lead the newly-formed company, which will concentrate on advancing a portfolio of precision medicines. The entity will leverage Scorpion's expertise and pipeline, excluding PI3Ka-related assets, to develop and deliver innovative treatments to patients.
