M&A News: AstraZeneca & Sun Pharma
The latest news on mergers and acquisitions featuring AstraZeneca/Neogene Therapeutics and Sun Pharmaceuticals/Concert Pharmaceuticals. Highlights below.
AstraZeneca Acquires Neogene Therapeutics in $320-M Deal
AstraZeneca has completed its acquisition of Neogene Therapeutics, a Santa Monica, California-based clinical-stage bio/pharmaceutical company focused on T-cell receptor therapies (TCR-Ts) for cancer, for $320 million ($200 million upfront, $120 million in milestone payments). The deal was announced in November 2022.
Neogene’s focus in TCR-T discovery, development and manufacturing will provide AstraZeneca with an improved cell-therapy oncology portfolio. TCR-Ts can recognize intracellular targets, including cancer-specific mutations, thereby potentially unlocking targets previously inaccessible using cell therapies.
AstraZeneca has acquired all outstanding equity of Neogene in exchange for an initial payment of $200 million and up to $120 million in additional contingent milestone-based and non-contingent consideration.
Neogene will operate as a wholly owned subsidiary of AstraZeneca, with operations in Amsterdam, the Netherlands and California.
Sun Pharma To Acquire Concert Pharmaceuticals for $576 M
Sun Pharmaceuticals, a Mumbai, India-based bio/pharmaceutical company, has agreed to acquire Concert Pharmaceuticals, a Lexington, Massachusetts-based bio/pharmaceutical company, for $576 million plus contingent value right (CVR) payments.
Concert is a late-stage bio/pharmaceutical company focused on the use of deuterium in medicinal chemistry. Its lead product is deuruxolitinib in Phase III development to treat alopecia areata, an autoimmune dermatological disease causing hair loss. With the closing of the acquisition, Sun Pharma plans to follow Concert’s plan to submit a new drug application to the US Food and Drug Administration in the first half of 2023.
Under merger agreement, Sun Pharma will commence a tender offer to acquire all outstanding shares of Concert common stock for $8.00 per share of common stock in cash, representing a total equity value of $576 million. Concert stockholders will also receive a non-tradeable CVR, which entitles Concert stockholders to receive up to an additional $3.50 per share of common stock in cash, payable upon deuruxolitinib achieving certain net sales milestones within specified periods, subject to the terms and conditions of the CVR agreement.
The Boards of Directors of both companies have approved the transaction, and Concert’s Board of Directors have unanimously recommend to Concert stockholders to tender their shares in the tender offer. The transaction is expected to close in the first quarter of 2023, conditioned upon the successful completion of the tender offer and customary closing conditions.
Source: Sun Pharmaceuticals