(Reuters) -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.
(Reporting by Sneha S K; Editing by Shilpi Majumdar)
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