Alexion To Acquire Achillion Pharmaceuticals for $930 MillionBy
Alexion Pharmaceuticals, a Boston, Massachusetts-based pharmaceutical company focused on rare diseases, has agreed to acquire Achillion Pharmaceuticals, a Blue Bell, Pennsylvania-based clinical-stage biopharmaceutical company focused on developing oral small-molecule Factor D inhibitors for certain rare diseases, for $930 million.
Achillion’s clinical-stage medicines include danicopan, in Phase II development for treating paroxysmal nocturnal hemoglobinuria (PNH), a rare blood disorder, and ACH-5228, in Phase I development and a second-generation, oral factor D inhibitor. Factor D is a serine protease and control point in the alternative pathway (AP) of the complement system, a part of the innate immune system, and a target for selective suppression of AP activity. With drug candidates targeting a control point for the generation of AP activity, Achillion has prioritized the development of oral factor D inhibitors as potential treatments for patients with PNH and C3 glomerulopathy, a disease affecting the kidneys.
The initial consideration is for approximately $930 million, or $6.30 per share of Achillion common stock. As part of the acquisition, Alexion will also be acquiring the cash currently on Achillion’s balance sheet. As of September 30, 2019, this was approximately $230 million; the actual amount will be determined as of the transaction close. The transaction includes the potential for additional consideration in the form of non-tradeable contingent value rights which will be paid to Achillion shareholders if certain clinical and regulatory milestones are achieved within specified periods. These include $1.00 per share for US Food and Drug Administration approval of danicopan and $1.00 per share for ACH-5228 Phase III initiation.
Alexion’s acquisition of Achillion is subject to the approval by Achillion shareholders and satisfaction of customary closing conditions and approval from relevant regulatory agencies, including clearance under the Hart-Scott Rodino Antitrust Improvements Act. Pending these approvals, the transaction is expected to close in the first half of 2020.
Source: Alexion Pharmaceuticals and Achillion Pharmaceuticals