Eli Lilly (NYSE:LLY) is in advanced discussions to purchase cancer-focused biotech Scorpion Therapeutics for as much as $2.5 billion. Eli Lilly (NYSE:LLY) is expected to pay around $1 billion upfront for the privately owned Scorpion,

Eli Lilly is partnering with the fabled venture capital firm Andreessen Horowitz on a new fund backed with $500 million of the drug giant’s money.

The Biotech Ecosystem Venture Fund will combine the sourcing capabilities of venture capital firm Andreessen Horowitz (a16z) with Eli Lilly’s expertise in R&D—plus half a billion in capital from the Big Pharma.

Eli Lilly and venture capital firm Andreessen Horowitz (a16z) are joining forces to create a unique new fund dubbed the Biotech Ecosystem Venture Fund, backed by $500 million of Lilly’s capital.