Japan's Ono Pharma says $2.4 bln Deciphera purchase 'first step' for global expansion

Deciphera Pharmaceuticals

30/04/2024 08:41

By Rocky Swift
       TOKYO, April 30 (Reuters) - Japan's Ono Pharmaceutical
Co  4528.T  said on Tuesday its $2.4 billion takeover of
Deciphera Pharmaceuticals  DCPH.O  is a "first step" in
expanding in U.S. and European markets.
    
    WHY IT'S IMPORTANT
    With this deal, Ono Pharma joins Japanese rivals Takeda
Pharmaceutical  4502.T  and Astellas Pharma  4503.T  which have
spent big recently to replenish their drug pipelines.
     
    KEY QUOTES
    "We've gotten to stage 1 and 2 on a global level, but in
order to start recording sales at a quicker pace, we need to
obtain a pipeline from outside. This acquisition is the first
step in that direction," Ono Pharma CEO Gyo Sagara said at an
online briefing.
    "After this first M&A, this does not mean that we will do a
second or third, but we will always keep an eye on acquiring
good compounds from the outside and will make sure to go in if
we have a chance," he added.
     
    CONTEXT
    Ono Pharma is best known globally for its blockbuster cancer
drug Opdivo, which is sold in the U.S. by partner Bristol-Myers
Squibb  BMY.N . The drug expected to lose patent protection in
major markets from 2028.
    The purchase includes Deciphera's oral drug Qinlock to treat
a type of gastrointestinal cancer, which received the U.S. Food
and Drug Administration's full approval in 2020.
    Another major pipeline prospect is Vimseltinib, a treatment
for a type of tumor found in some joints.
    
    BY THE NUMBERS
    Ono Pharma offered $25.60 per share in cash, a premium of
74.7% to U.S.-based Deciphera's previous closing price.
    Qinlock had global sales of $163 million in 2023. Ono Pharma
expects Qinlock and Vimseltinib together will reach peak global
sales of $1 billion.
     
    MARKET REACTION
    Ono Pharma shares slid 1% on Tuesday, after the deal was
announced on a Japanese holiday on Monday. Deciphera shares shot
up 73%.
     

 (Editing by Ros Russell)