Pharmaceutical giant Eli Lilly & Co. (LLY) is buying privately held Scorpion Therapeutics’ experimental cancer therapy for $2.5 billion U.S. in cash.
Eli Lilly is purchasing Scorpion’s experimental oral therapy called “STX-478,” which is in early-stage trials for the treatment of breast cancer and other advanced solid tumors.
The deal will help Eli Lilly to expand its pipeline of cancer treatments. Eli Lilly is not buying Scorpion Therapeutics, only its experimental cancer treatment.
The deal includes an upfront payment by Eli Lilly to Scorpion, followed by subsequent payments upon certain regulatory milestones for the cancer therapy being reached.
Separately, Eli Lilly said that it expects its new weight loss pill to be approved by U.S. regulators in 2026.
The Indianapolis, Indiana-based company said that it will release late-stage trial data on the drug, called “Orforglipron,” by the middle of this year.
Eli Lilly and rival Novo Nordisk (NVO) dominate the global market with their obesity injections Zepbound and Wegovy, respectively.
Each company is looking to develop next-generation versions of their weight loss medications.
A weight loss pill would offer more convenience to patients, would be easier to manufacture, and would cost less for consumers to purchase.
The stock of Eli Lilly has risen 26% over the past 12 months to trade at $797.48 U.S. per share.
