Stemline inks acquisition deal worth up to $677M with Menarini
Category: #health  By Saipriya Iyer  Date: 2020-05-05
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Stemline inks acquisition deal worth up to $677M with Menarini

Stemline Therapeutics, a commercial-stage biopharmaceutical company, has reportedly signed an acquisition deal with Menarini Group, an Italian pharmaceutical company.

A New York-based company, Stemline, has developed the first drug approved by the FDA, tagraxofusp (Elzonris), for treating BPDCN (blastic plasmacytoid dendritic cell neoplasm). The drug targets a cell surface protein that is associated with blood cancer.

The two companies reported that the recently announced acquisition agreement was valued at nearly $677 million. As per the terms of the deal, Menarini, headquartered in Florence, intends to obtain the shares of Stemline at $12.50 apiece, which is divided into $11.50 up front as well as another $1 upon the 1st sale of the drug in the United Kingdom, Spain, Italy, Germany, and France, following the European Commission approval.

Sources familiar with the matter have stated that Stemline requested the regulators in Europe to review the drug that can potentially treat adult BPDCN patients in January 2019. The sales of the drug in the U.S. reached $43.2 million in the first year of its launch in the market. However, the company has reported a $76.8 million net loss in 2019.

Elcin Barker Ergun, CEO of Menarini, has stated that the acquisition will significantly expand its presence in the U.S. market as well as strengthen the oncology portfolio. The privately held biopharmaceutical company reported that the annual sales of its products top $4.2 billion.

Stemline also plans to launch the drug outside the U.S. market as well as advance it into a potential drug for treating other diseases. The company is evaluating the BPDCN drug in Phase 1/2 trials as a potential treatment for patients suffering from acute myeloid leukemia, myelofibrosis, and chronic myelomonocytic leukemia. Following the announcement of the acquisition deal, Stemline’s stock price rose to $12.10, a hike of more than 150% as compared to its $4.75 per share closed on Friday.

Source credit:

https://xconomy.com/new-york/2020/05/04/stemline-slated-for-acquisition-by-menarini-in-deal-worth-up-to-677m/



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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