Overview of the Deal
Acquirer: Eli Lilly and Company
Target: Scorpion Therapeutics, Inc.
Total Transaction Size: Up to $2.5 billion
Upfront Payment: Approximately $1 billion
Potential Milestone Payments: Up to $1.5 billion
Announcement Date: January 13, 2025
Expected Close Date: Subject to customary closing conditions and regulatory approvals
Target Advisors: Not publicly disclosed
Acquirer Advisors: Not publicly disclosed
On January 13, 2025, Eli Lilly and Company (Lilly) announced a definitive agreement to acquire Scorpion Therapeutics, Inc., a Boston-based biotechnology firm specializing in precision oncology therapies. The acquisition focuses on Scorpion’s lead program, STX-478, a mutant-selective PI3Kα inhibitor currently in Phase 1/2 clinical trials for breast cancer and other advanced solid tumors.
Company Details (Acquirer – Eli Lilly and Company)
Eli Lilly and Company is a global pharmaceutical leader dedicated to discovering and delivering innovative medicines to address significant health challenges.
- Founded: 1876
- Headquarters: Indianapolis, Indiana, USA
- CEO: David A. Ricks
- 2024 Revenue: Approximately $46 billion
- Market Cap: Over $750 billion
- Recent Acquisitions:
- Loxo Oncology (2019)
- Point BioPharma (2023)
Company Details (Target – Scorpion Therapeutics, Inc.)
Scorpion Therapeutics is a clinical-stage biotechnology company focused on developing next-generation precision medicines for cancer treatment.
- Founded: 2020
- Headquarters: Boston, Massachusetts, USA
- CEO: Adam Friedman, M.D., Ph.D.
- Lead Program: STX-478, a once-daily oral, mutant-selective PI3Kα inhibitor
Projections and Assumptions
Short-Term Consequences
- For Lilly: The acquisition enhances Lilly’s oncology pipeline, particularly in targeting PI3Kα mutations prevalent in hormone-positive breast cancers.
- For Scorpion: Provides resources and expertise to accelerate the development and potential commercialization of STX-478.
Long-Term Upsides
- STX-478 Development: STX-478 has the potential to address 30-40% of patients with hormone-positive breast cancer, offering a differentiated clinical profile with improved tolerability.
- Market Expansion: Successful development and approval of STX-478 could position Lilly as a leader in precision oncology therapies, particularly for cancers driven by PI3Kα mutations.
Risks and Uncertainties
- Regulatory Approvals: The transaction is subject to customary closing conditions, including regulatory approvals.
- Developmental Risks: As STX-478 is in early-stage clinical trials, there are inherent risks associated with clinical development, including efficacy and safety outcomes.
Sources
