Sector News

AZ announces $4-billion deal for majority stake in Acerta

December 17, 2015
Life sciences

AstraZeneca how has confirmed that it intends to take a majority stage in privately held US/Dutch clinical stage biopharma Acerta Pharma in a deal valued at $4 billion.

The drugs giant said it will pay Acerta $2.5 billion upfront, plus an unconditional $1.5 billion either on receipt of the first regulatory approval for cancer drug acalabrutinib in the US, or the end of 2018, depending on which comes first.

The agreement also provides Acerta’s shareholders the opportunity to sell, and AZ to buy, the remaining 45% of the firm’s shares. These options can be exercised at various points in time, conditional on the first approval of acalabrutinib in both the US and Europe and when the extent of the commercial opportunity has been fully established, at a price of around $3 billion net of certain costs and payments incurred by AZ.

Acalabrutinib is being tested in a variety of leukaemia’s, lymphomas and other cancers, and alongside Merck & Co’s immunotherapy Keytruda (pembrolizumab). The drug is a BTK inhibitor with a mode of action similar to AbbVie/Johnson & Johnson’s blood cancer drug Imbruvica (ibrutinib), which is widely expected to rake in peak sales in excess of $5 billion.

Early clinical data looks promising; results from a Phase I/II study recently published in the New England Journal of Medicine showed a 95 percent response rate in patients with relapsed chronic lymphocytic leukaemia, the most prevalent form of adult leukaemia.

“Acalabrutinib provides us with a small molecule presence in blood cancers to complement our existing immunotherapy approach, in collaboration with Celgene in haematological malignancies,” said AZ’ chief executive Pascal Soriot. “Furthermore, we look forward to working closely with the Acerta team and benefiting from the considerable clinical expertise they bring in this complex area of medicine”.

The move falls in line with AZ’ strategy of focusing acquisitions to boost its long-term growth prospects. Just last month, the company announced plans to buy US biotech ZS Pharma for $2.7 billion, gaining access to its flagship cardiovascular compound, a potential best-in-class treatment for hyperkalaemia – a condition characterised by elevated levels of potassium in the blood linked with increased mortality in chronic kidney disease and coronary heart failure.

The transaction with Acerta is expected to complete by the end of the first quarter of 2016, subject to customary closing conditions, and be moderately dilutive to AZ’ core earnings in the near term.

By Selina McKee

Source: Pharma Times

comments closed

Related News

September 25, 2022

Rise of the machines: Novo Nordisk pledges $200M to create first quantum computer for life sciences

Life sciences

Big Pharma has long seen the potential for AI and machine learning to accelerate drug development. But Novo Nordisk is going a step further by channeling $200 million toward the creation of a computer that will outrun anything in existence.

September 25, 2022

Mount Sinai AI uncovers new brain analysis method to predict dementia, Alzheimer’s disease

Life sciences

Current methods for diagnosing Alzheimer’s disease rely on a complex combination of self- and caregiver-reported symptoms, a physical examination and either a PET scan or a spinal tap to look for evidence of amyloid plaque build-ups in the brain. But a new artificial intelligence-based method may make the diagnostic process a much more objective one.

September 25, 2022

New AstraZeneca-backed report finds big money behind diverse owners and entrepreneurs in Europe

Life sciences

There is lots of talk about diversity and inclusion in business, including in pharma and medtech. A new report by the Open Political Economy Network (OPEN), a think tank focusing on migration and diversity, released its “Minority Businesses Matter: Europe” report highlighting the successes and challenges of ethnic minority-owned businesses in Europe.