Eli Lilly to buy cancer drugmaker Scorpion Therapeutics for up to $2.5 bn

Eli Lilly said on Monday it would buy cancer therapy developer Scorpion Therapeutics for up to $2.5 billion in cash. 

Lilly will acquire Scorpion's experimental oral therapy, STX-478, which is currently being tested in early-stage trials for breast cancer and other advanced solid tumors. 

The therapy is a PI3K inhibitor, which selectively targets a type of protein called PI3K. 

The agreement includes an upfront payment and subsequent payments upon achieving certain regulatory and sales milestones. 

As part of the deal, Scorpion will spin out a new entity to hold its employees and non-PI3K pipeline assets. The new, independent company will be owned by Scorpion's current shareholders, with Lilly holding a minority equity interest.   

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