Servier Acquires Agios’ Oncology Business for $2 BnBy
Servier, a Paris-based pharmaceutical company, has acquired the commercial, clinical, and research-stage oncology portfolio of Agios Pharmaceuticals, a Cambridge, Massachusetts-based pharmaceutical company, for up to $2 billion plus royalties. Agios plans to use the proceeds from the sale to repurchase stock.
Under the transaction agreement with Servier, Agios received an upfront payment of $1.8 billion from Servier and is eligible to receive an additional $200 million in a potential regulatory milestone, plus royalties. The acquisition strengthens Servier’s commercial presence in the US’ malignant hematology market and provides the potential for long-term growth into the solid tumor space.
As part of the transaction, US-based Agios employees who primarily support the oncology business will join Servier Pharmaceuticals, a US subsidiary of Servier. The transaction includes the transfer to Servier of Agios Pharmaceuticals’ oncology portfolio, development pipeline and research programs, notably: (1) Tibsovo (ivosidenib tablets), for the treatment of relapsed or refractory acute myeloid leukemia; (2) Idhifa (enasidenib), a medicine co-promoted with Bristol-Myers Squibb (BMS) in the US for treating relapsed or refractory acute myeloid leukemia in patients with a specific genetic mutation; (3) vorasidenib, an investigational, oral, selective, brain-penetrant inhibitor of mutant IDH1 and IDH2 enzymes; and (4) AG-270, an investigational methionine adenosyltransferase 2a (MAT2A) inhibitor being evaluated in combination with taxanes in patients with methylthioadenosine phosphorylase-deleted non-small cell lung cancer and pancreatic cancer.
Deal with Bristol-Myers Squibb
Separately, Agios has entered into a definitive agreement with Bristol-Myers Squibb (BMS) to repurchase 7,121,658 shares of Agios common stock held by BMS and its affiliates for an aggregate purchase price of $344.5 million using the proceeds from the sale of the oncology business.
The Agios Board of Directors authorized the company to repurchase up to $1.2 billion of its outstanding shares, using the proceeds from the sale of the oncology business. Following completion of the repurchase of shares from BMS, Agios expects to conduct the remaining $855.5 million of share repurchases over the next 12-18 months (as reported on April 1, 2021), including executing a meaningful portion of the planned repurchases by year-end through a combination of 10b5-1 plans and open-market purchases.