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 creation of a new spinout company and the divestiture of its clinical-stage assets. This move comes on the heels of a major deal with Eli Lilly earlier this year, signaling a strategic shift in the company's focus and pipeline.

Antares Therapeutics Launches with $177M Funding

Scorpion has spun out a new company, Antares Therapeutics, which will focus on advancing three preclinical precision medicine candidates. The spinout has secured a substantial $177 million series A financing round, 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 funding round include Abingworth and Vida Ventures.

Antares will be helmed by former Scorpion CEO Adam Friedman, M.D., Ph.D., who will lead the company in its mission to develop first-in-class therapies targeting previously undruggable targets in cancer and other areas of unmet medical need. The new company's most advanced asset is expected to enter clinical trials in 2026.

Pierre Fabre Acquires Scorpion's Clinical-Stage EGFR Inhibitors

In a parallel move, Scorpion has divested its clinical-stage assets to French pharmaceutical company Pierre Fabre Laboratories. The deal grants Pierre Fabre global rights to two next-generation mutant EGFR inhibitors designed to treat non-small cell lung cancer. This transaction builds upon a previous partnership between the two companies, which had involved potential payments of up to $553 million in biobucks.

Under the terms of the new agreement, Pierre Fabre will take the lead on clinical development and potential commercialization for both EGFR inhibitor programs. Antares remains eligible to receive milestone payments and royalties from this arrangement, maintaining a stake in the potential success of these assets.

Strategic Realignment Following Eli Lilly Deal

This restructuring follows Scorpion's sale of its mutant-selective PI3Kα inhibitor, STX-478, to Eli Lilly in early 2025 for up to $2.5 billion in biobucks. The Lilly deal came after promising phase 1 data suggested that STX-478 might have advantages over competing drugs from Novartis and Roche in the same class.

The series of transactions – from the Lilly deal to the Pierre Fabre sale and the Antares spinout – represents a significant pivot for Scorpion Therapeutics. By divesting its clinical-stage assets and focusing resources on earlier-stage programs through Antares, the company aims to leverage its expertise in medicinal chemistry and drug discovery to address challenging targets in oncology and beyond.