Scorpion Therapeutics Spins Out Antares with $177M Series A, Sells Clinical Assets to Pierre Fabre

Scorpion Therapeutics, a Boston-based biotech company, has announced a significant restructuring of its operations, including the spinout of a new company and the sale of its clinical assets. This move comes on the heels of Eli Lilly's acquisition of Scorpion's PI3Kα program earlier this year.

Antares Therapeutics Emerges with Robust Funding

Antares Therapeutics, the newly formed spinout, has successfully raised $177 million in a Series A funding round. The financing was co-led by a consortium of prominent investors, including Omega Funds, Atlas Venture, Lightspeed Venture Partners, BVF Partners, and Cormorant Asset Management. Additional participants in the round included Abingworth and Vida Ventures.

The new company will be helmed by Dr. Adam Friedman, former CEO of Scorpion Therapeutics, who will lead the effort to advance three preclinical precision medicine candidates. Antares aims to leverage Scorpion's proprietary drug discovery capabilities to target previously undruggable targets in cancer and other diseases with high unmet need.

Dr. Friedman commented on the company's formation, stating, "We took our name from Antares, the brightest star in the Scorpius constellation, and known as 'the heart of the Scorpion'. We are building from a strong foundation with a team of experts who are experienced in making new medicines, as well as proprietary drug discovery capabilities and a robust preclinical pipeline fueled by discoveries in drugging previously inaccessible targets."

Clinical Asset Divestiture to Pierre Fabre

Concurrent with the Antares spinout, Scorpion Therapeutics has divested its two clinical-stage programs to Pierre Fabre Laboratories. The French pharmaceutical company has acquired global rights to two next-generation mutant EGFR inhibitors designed to treat non-small cell lung cancer.

This transaction builds upon a previous collaboration between the two companies, in which Pierre Fabre had committed up to $553 million in potential milestone payments for the lung cancer candidates. Under the new agreement, Pierre Fabre will take the lead on clinical development and potential commercialization for both programs. Antares remains eligible to receive milestone payments and royalties from this arrangement.

The deal with Pierre Fabre represents a strategic shift for Scorpion, allowing the company to focus its resources on earlier-stage research while maintaining potential upside from its clinical-stage assets.

Industry Implications and Future Outlook

The restructuring of Scorpion Therapeutics and the emergence of Antares highlight the dynamic nature of the biotech industry, where companies frequently pivot their strategies to maximize the value of their assets and technologies. The substantial Series A funding secured by Antares underscores investor confidence in the company's approach to targeting difficult-to-drug proteins.

With its most advanced asset expected to enter the clinic next year, Antares is poised to make significant contributions to the field of precision medicine. The company's focus on transcription factors, stemming from Scorpion's previous deal with AstraZeneca, positions it at the forefront of an exciting area of drug discovery.

As the pharmaceutical landscape continues to evolve, the creation of Antares and the strategic partnerships formed by Scorpion Therapeutics exemplify the industry's ongoing efforts to bring innovative therapies to patients with unmet medical needs.