Seattle Genetics, a Bothell, Washington-headquartered biopharmaceutical company, has agreed to acquire Cascadian Therapeutics, a Seattle, Washington-headquartered biopharmaceutical company focused on oncology, for $614 million.

Cascadian Therapeutics’ most advanced program is tucatinib, an investigational oral, small-molecule tyrosine kinase inhibitor that is selective for HER2, a growth factor receptor that is overexpressed in multiple cancers, including breast, colorectal, ovarian, and gastric. Tucatinib is currently being evaluated in a trial for patients with HER2-positive (HER2+) metastatic breast cancer, including patients with or without brain metastases. Tucatinib has been evaluated as a single agent and in combination with both chemotherapy and other HER2-directed agents, including Roche’s Herceptin (trastuzumab), a cancer drug, and Roche’s Kadcyla (trastuzumab emtansine), a breast cancer drug.

Seattle Genetics’ lead commercial product is Adcetris (brentuximab vedotin), an antibody drug conjugate (ADC), indicated for treating relapsed classical Hodgkin lymphoma and relapsed systemic anaplastic large cell lymphoma. Seattle Genetics is also advancing enfortumab vedotin, an ADC for treating metastatic urothelial cancer, in a planned trial in collaboration with Astellas and has a pipeline of therapies for blood-related cancers and solid tumors.

Under the agreement, Seattle Genetics will commence a tender offer on or about February 8, 2018 to acquire all of the outstanding shares of common stock of Cascadian Therapeutics for $10 per share in cash. The tender offer is subject to customary closing conditions, including the tender of at least a majority of the outstanding shares of Cascadian Therapeutics common stock (on a fully diluted basis) and the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Following the closing of the tender offer, a wholly owned subsidiary of Seattle Genetics will merge with and into Cascadian Therapeutics, with each share of Cascadian Therapeutics common stock that has not been tendered being converted into the right to receive the same $10 per share in cash offered in the tender offer. The transaction is anticipated to close in the first quarter of 2018.

Source: Seattle Genetics