AstraZeneca forges deal with Scorpion Therapeutics worth US$1.6 billion

USA – AstraZeneca has announced that it will use Scorpion Therapeutics’ discovery platform to develop precision medicines against previously difficult-to-target cancer proteins.

According to Susan Galbraith, AstraZeneca’s executive vice president of oncology R&D, the platform “is a strong strategic fit as we explore a range of new modalities across our broad drug discovery toolbox.”

The collaboration will focus on transcription factors, which were previously considered ‘undruggable’ using traditional drug discovery approaches, according to the UK drugmaker.

Scorpion will lead discovery and certain preclinical activities under the terms of the agreement, while AstraZeneca will have the exclusive option to license worldwide rights to up to three drug candidates.

Following opt-in, AstraZeneca would be responsible for worldwide development and commercialization activities, while Scorpion would retain the option to co-develop and co-promote up to two of these programs in the United States under certain conditions, including if AstraZeneca exercises three license options.

Scorpion will receive an upfront payment of US$75 million from AstraZeneca, as well as up to US$1.6 billion in option fees and milestone payments, as well as tiered sales royalties ranging from the mid-single digits to the low-double digits.

Scorpion will participate in the operating costs and be entitled to a proportionate share of the economics in the US if it exercises its option on a nominated programme, according to the companies, subject to certain adjustments.

Scorpion is pursuing “Precision Oncology 2.0,” a strategy that combines advanced technologies in cancer biology, medicinal chemistry, and data science into a single platform to create selective small molecule compounds against a broad range of targets.

The company uses technologies like genome-wide CRISPR, RNA, or resistance mutation screening; integration of large data sets like TCGA, the Cancer Cell Line Encyclopedia, and DepMap; and cloud-based supercomputing with proprietary algorithms to create more focused “drug-like” library designs.

“We expect this collaboration will accelerate [our] efforts to deliver the promise of ‘Precision Oncology 2.0’: optimized, transformational therapies for more patients living with cancer,” said Axel Hoos, CEO of Scorpion.

Scorpion was founded in 2020 with a US$108 million Series A round of funding, followed by a US$162 million Series B round last year.

Liked this article? Sign up to receive our regular email newsletters, focused on Africa and World’s healthcare industry, directly into your inbox. SUBSCRIBE HERE