Deciphera Pharmaceuticals Acquired for $2.4 Billion

Deciphera Pharmaceuticals, a biopharmaceutical company focused on developing and commercializing new medicines for cancer treatment, has announced its acquisition by Ono Pharmaceutical Co., Ltd for $2.4 billion. Under the terms of the agreement, Ono will acquire all outstanding shares of Deciphera for $25.60 per share in cash, representing a premium of 74.7% to Deciphera’s closing share price of $14.65 on April 26, 2024.

Deciphera's established commercialization platform in the United States and Europe, along with its specialized research and development capabilities in kinase drug discovery, are expected to reinforce Ono Pharmaceutical's pipeline and accelerate its global reach. Deciphera's portfolio includes QINLOCK®, a switch-control inhibitor for the treatment of fourth-line gastrointestinal stromal tumor (GIST), which is approved in the United States and over 40 other countries. Additionally, Deciphera brings a mature pipeline of potential medicines, including Vimseltinib and DCC-3116.

The acquisition is anticipated to allow Ono to build a robust presence in the oncology space, supporting its efforts to become a global specialty pharma company. Upon completion of the acquisition, Deciphera will operate as a standalone business of the Ono Group from its headquarters in Waltham, Massachusetts.

In connection with the execution of the merger agreement, certain stockholders of Deciphera owning approximately 28% of the outstanding shares of common stock have entered into tender and support agreements, agreeing to tender all of their owned shares in the offer.

J.P. Morgan Securities LLC is serving as the exclusive financial advisor to Deciphera, while Goodwin Procter LLP is serving as legal counsel. BofA Securities is serving as financial advisor to Ono, with Greenberg Traurig acting as legal counsel.

Deciphera will not host a first quarter 2024 earnings call in light of the acquisition, but will file a Form 10-Q in the ordinary course.

The acquisition is expected to close in the third quarter of 2024, subject to customary closing conditions, including U.S. antitrust clearance and the tender of a majority of Deciphera’s outstanding shares of common stock. As a result of these announcements, the company's shares have moved 72.1% on the market, and are now trading at a price of $25.21. If you want to know more, read the company's complete 8-K report here.

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