Deal Watch: Ireland's Amryt Acquires Aegerion
Executive Summary
European firms Amryt and Evotec have signed agreements to acquire two companies based across the Atlantic – Aegerion and Just Biotherapeutics, respectively.
Amryt Pharma PLC of Ireland agreed to buy Aegerion Pharmaceuticals Inc., a subsidiary of Canada's Novelion Therapeutics Inc., on 20 May, giving it full rights to Juxtapid/Lojuxta (lomitapide), the homozygous familial hypercholesterolemia drug it markets in Europe.
The all-paper transaction implies an equity valuation of $120m for Amryt and $190.7m for Aegerion and the company plans to raise $60m concurrent with the closing of the deal, backed by certain Aegerion bondholders. The enlarged company, which will have combined pro forma 2018 revenues of $136.5m, will then be re-admitted to the Euronext in Dublin and London's AIM market, with a planned dual listing on the Nasdaq.
In addition to getting full access to Lojuxta, Amryt is getting hold of Myalept/Myalepta (metreleptin) a leptin hormone replacement therapy approved on both sides of the Atlantic for generalized lipodystrophy. As for pipeline, the companies highlighted AP101 for epidermolysis bullosa (EB), described as a more than $1bn market opportunity which is in a Phase III trial, and AP103, a gene therapy platform which offers a potential treatment for patients with EB and other topical indications.
Amryt shareholders could receive further pay-outs in the form of contingent value rights worth up to $85m if the company achieves certain development goals with its AP101 for epidermolysis bullosa.
Aegerion merged with Canada's QLT three years ago, with the resulting new company renamed as Novelion. It has suffered a tough few years with Juxtapid suffering from the arrival of the PCSK9 inhibitors - Amgen Inc.'s Repatha (evolocumab) and Sanofi/Regeneron Pharmaceuticals Inc.'s Praluent (alirocumab) to the market, while it has also been hit by a swath of lawsuits and warnings from regulators related to improper sales and marketing of the therapy. (Also see "Deal Watch: Merger Addresses Problems Of Both Aegerion, QLT" - Pink Sheet, 20 Jun, 2016.)
Evotec To Acquire Just Biotherapeutics
Germany's Evotec AG announced on 20 May that it is to acquire Seattle, WA-based Just Biotherapeutics Inc. (Just.Bio) in a deal that could be worth up to $90m.
Founded in 2014 by a group of former Amgen Inc. scientists and backed by investors including Merck & Co. Inc., Eli Lilly & Co. and the Bill & Melinda Gates Foundation, Just.Bio, which had revenues of $20m in 2018, has developed a technology platform called J.DESIGN which integrates the design, development and manufacture of biologics. Evotec will make an initial payment of $60m, plus potential earn-outs of around $30m over the next three years.
The Hamburg-headquartered group, which has primarily focused on small molecules, said the deal grows its business into a comprehensive offering including biologics in therapeutic areas such as oncology, CNS, pain, inflammation, metabolics and infectious diseases. It will also expand Evotec's US footprint in Seattle, which the company claimed is a biologics hub. (Also see "Evotec Sets Empire Building Sights On Infectious Disease Space" - Scrip, 10 Aug, 2018.)
Adaptimmune and Alpine Link Up For SPEAR T-Cell Therapies
UK T-cell receptor biotech Adaptimmune Therapeutics PLC has joined forces with the USA's Alpine Immune Sciences Inc. to design and develop next-generation specific peptide enhanced affinity receptor (SPEAR) T-cell therapies for use in attacking solid tumors.
Adaptimmune, which has facilities in Philadelphia and Oxford, UK, said it will license Seattle, WA.-based Alpine’s secreted and transmembrane immunomodulatory protein (SIP and TIP) technology platform for use with the UK group’s SPEAR T-cells to enhance antitumor responses.
Under terms of their agreement, announced 15 May, Adaptimmune has an option under each program to take a worldwide exclusive license for development and commercialization of SPEAR T-cell products incorporating the developed SIP or TIP candidate for the treatment of cancer. Adaptimmune in turn will pay an upfront payment and research funding for ongoing programs.
Alpine may also be eligible for downstream development and commercialization milestones up to $288m if all pre-specified milestones for each program are achieved, plus low-single digit royalties.
Catalent Completes Paragon Purchase
Catalent Inc. confirmed on 20 May that it has completed the $1.2bn acquisition of fellow US firm Paragon Bioservices, a leading viral vector development and manufacturing partner for gene therapies.
With the addition of Paragon’s specialized expertise in adeno-associated virus (AAV) vectors, the most commonly used vector to deliver DNA to cells, Catalent said it is positioned "to capitalize on strong industry tailwinds in the potentially $40bn addressable market for gene therapies." Paragon has GMP manufacturing projects underway with more than half of the top 40 leading gene therapy developers worldwide.