In its biggest buyout to date, Ono Pharmaceutical is set to acquire American cancer drug maker Deciphera Pharmaceuticals for $2.4 billion, according to Nikkei Asia. The move is aimed at ensuring continued growth as patents for Ono's Opdivo cancer immunotherapy are set to expire in 2028.
The acquisition will be completed via a tender offer with Ono purchasing all outstanding shares of Deciphera. The offer price of $25.60 per share represents a 74.7% premium over Deciphera's closing stock price in mid-May.
Established in 2003, Deciphera is known for its Qinlock cancer drug, which inhibits enzymes crucial for cancer cell proliferation. The company's global revenue in 2023 was $163 million, driven by Qinlock sales and collaboration revenue.
Ono predicts Qinlock's sales to surge between $350 million and $400 million. Also, Deciphera has promising new-drug candidates, including a treatment for benign tumors in joints and another for blood cancer complications, which is seen to generate sales of $700 million annually.
The acquisition is vital for Ono's strategic growth after Opdivo’s patents expire. Meanwhile, Ono is developing new-drug candidates, like Velexbru, for cancer treatment. But, it will take a few years before they can be approved and marketed.
The deal, approved by the boards of both companies and expected to close later this year, will strengthen Ono's sales capabilities in the United States and expand its overseas sales networks. Once finalized, Deciphera becomes a wholly-owned subsidiary of Ono.
