Servier Strengthens Oncology with Agios Acquisition
In another move to bolster its oncology portfolio, French pharma Servier has agreed to buy Agios Pharmaceuticals’ business, including its commercial, clinical and research-stage portfolio, for up to $2 billion. The transaction includes an upfront payment of $1.8 billion plus a potential $200 million in regulatory milestones and royalties.
Agios, headquartered in Boston, Massachusetts, USA, has decided to step out of the oncology area to focus on its genetic disorder disease portfolio. The company anticipates applying for regulatory approvals in Europe and the US during the second quarter of 2021 for its lead candidate, blood disorder treatment mitapivat, with a potential commercial launch in 2022.
“Our decision to accelerate the next chapter of Agios’ success with a singular focus on genetically defined diseases and sell our oncology portfolio to Servier is a transformational milestone for Agios,” said Jackie Fouse, CEO of Agios.
“With mitapivat poised to become a new potential treatment option for patients with pyruvate kinase (PK) deficiency, thalassemia and sickle cell disease and with a rich pipeline based on our pioneering leadership in PK activation and cellular metabolism, Agios’ near- and long-term future is filled with significant value-generating catalysts,” Fouse said. The sale proceeds, she added, will allow the company to rapidly advance its genetically defined disease portfolio, strengthen its capital structure and return at least $1.2 billion to shareholders post-closing.
Both companies’ boards of directors have approved the deal, which is expected to complete in the second quarter of 2021, subject to regulatory clearances and approval by Agios shareholders.
“The strategic acquisition of Agios’ oncology business, including its precision medicine portfolio and pipeline, is aligned with our ambition to become a recognized player in oncology and further supports our commitment to provide innovative treatments to cancer patients with unmet medical needs,” said Servier president Olivier Laureau. “It is a key step for the Servier Group as it will significantly strengthen our position in the US and reinforce our R&D capabilities in oncology.”
David Lee, CEO of Servier Pharmaceuticals, Servier’s US subsidiary, added that the purchase “allows for an immediate expansion of our US business into other hematologic malignancies and provides the potential for longer-term growth into the solid tumor space.”
The transaction includes Agios’ Tibsovo for treating adults with acute myeloid leukemia (AML), as well as Agios’ co-commercialization responsibilities for Bristol Myers Squibb’s Idhifa (enasidenib) AML therapy.
Additionally, the deal gives Servier access to Agios’ oncology pipeline, and clinical and research programs, which include investigational brain cancer drug vorasidenib, AG-270 for treating non-small cell lung and pancreatic cancers, and AG-636, which is being studied for both lymphoma and blood cancers.
Servier has designated oncology one of its strategic priorities and allocated 50% of its overall R&D budget to this area.
In April, Servier agreed to buy Danish biotech Symphogen, which was preceded in October 2019 by the purchase of blood cancer treatment Pixuvri from CTI BioPharma. In August 2018, the French drugmaker paid $2.4 billion to buy Shire’s oncology portfolio.
Author: Elaine Burridge, Freelance Journalist
