Scorpion Acquired by Lilly for $2.5 Billion to Bolster Oncology Pipeline
Deal News | Jan 13, 2025 | Abingworth LLP
Eli Lilly and Company has entered a definitive agreement to acquire Scorpion Therapeutics' mutant-selective PI3Kα inhibitor program, including their advanced stage cancer drug STX-478, which is currently in Phase 1/2 clinical trials. The acquisition aims to expand Lilly’s oncology portfolio and enhance their impact against hormone-positive breast cancer. Scorpion's precise approach targets the PI3K pathway in cancer cells, potentially providing better disease control and improved tolerability. The agreement includes a cash payment of up to $2.5 billion upon meeting regulatory milestones, alongside the spin-off of a new company retaining Scorpion’s employees and non-PI3K assets. Legal advisors for the transaction include Ropes & Gray LLP for Lilly, and Kirkland & Ellis LLP for Scorpion, with Citi and Centerview Partners as the respective financial advisors. This strategic acquisition reflects Lilly's commitment to pioneering cancer research and Scorpion's expertise in drug discovery with the potential for game-changing treatments.
Sectors
- Pharmaceuticals & Biotechnology
- Healthcare
Geography
- United States – The article mentions Indianapolis and Boston as key locations, representing the geographic bases of Eli Lilly and Scorpion Therapeutics, respectively.
Industry
- Pharmaceuticals & Biotechnology – The article involves Eli Lilly, a leading pharmaceutical company, acquiring Scorpion Therapeutics, a biotechnology firm specializing in precision oncology therapies.
- Healthcare – The acquisition focuses on advancing healthcare solutions, particularly in treating cancer through innovative oncology therapies.
Financials
- $2.5 billion – The total potential acquisition cost for Scorpion's PI3K inhibitor program, conditional upon certain regulatory and sales milestones.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Eli Lilly and Company | Acquiring Company | Company | A global pharmaceutical company known for its focus on advancing treatment options for various diseases including cancer. |
| Scorpion Therapeutics, Inc. | Target Company | Company | A private biotechnology company developing small molecule precision oncology therapies, involved in the acquisition agreement with Eli Lilly. |
| Citi | Financial Advisor for Lilly | Company | Acting as the exclusive financial advisor to Eli Lilly for the acquisition deal. |
| Ropes & Gray LLP | Legal Advisor for Lilly | Company | Providing legal counsel to Eli Lilly in the transaction. |
| Centerview Partners LLC | Lead Financial Advisor for Scorpion | Company | Providing financial advisory services to Scorpion Therapeutics in the acquisition. |
| Morgan Stanley | Additional Financial Advisor for Scorpion | Company | Offering additional financial advisory services alongside Centerview Partners for Scorpion Therapeutics. |
| Kirkland & Ellis LLP | Legal Advisor for Scorpion | Company | Acting as legal counsel for Scorpion Therapeutics in the acquisition by Eli Lilly. |
| Dr. Adam Friedman | CEO of Scorpion Therapeutics | Person | CEO of Scorpion Therapeutics, contributing strategic insights and leadership relevant to the acquisition. |
| Jacob Van Naarden | Executive Vice President and President of Lilly Oncology | Person | Leads Lilly's oncology segment, emphasizing the strategic significance of the STX-478 acquisition. |