On Monday, Eli Lilly And Co
STX-478 is a once-daily oral, mutant-selective PI3Kα inhibitor currently being evaluated in a Phase 1/2 clinical trial for breast cancer and other advanced solid tumors.
Additionally, as part of the transaction, the privately-held 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.
The new company will be led by members of the current Scorpion management team.
The Financial Times report added the proposed deal is a part of Eli Lilly's strategy to reinvest profits from its successful diabetes and obesity drugs, Mounjaro and Zepbound, into expanding its drug pipeline.
Under the terms of the agreement, Lilly will acquire Scorpion, and Scorpion shareholders could receive up to $2.5 billion in cash. Up to $1 billion will be paid upfront, with an additional $1.5 billion contingent on meeting specific performance milestones.
Price Action: Eli Lilly stock is down 1.55% at $787.49 at last check Monday.
