09:28 AM EST, 01/13/2025 (MT Newswires) -- Eli Lilly ( LLY ) agreed to acquire Scorpion Therapeutics and its STX-478 inhibitor program that is currently being assessed in a phase 1/2 clinical trial for breast cancer and other advanced solid tumors, the companies said Monday.

Under the terms of the deal, Eli Lilly ( LLY ) said it will acquire Scorpion and Scorpion shareholders could get up to $2.5 billion in cash, including an upfront payment and subsequent payments upon achievement of regulatory and sales milestones.

As part of the deal, the companies said Scorpion will spin out a new company that will hold its employees and certain pipeline assets. The new company will be owned by Scorpion shareholders and Eli Lilly ( LLY ) will hold a minority equity stake.