NEW YORK – Japanese pharmaceutical firm Kyowa Kirin on Thursday announced plans to acquire London-based gene therapy company Orchard Therapeutics.
Under the terms of the deal, Tokyo-based Kyowa Kirin will purchase Orchard for $16.00 per American Depositary Shares in cash, representing about $387.4 million. The purchase price is nearly double the Wednesday closing price of Orchard’s shares of $8.08.
Orchard shareholders will hold an additional contingent value right of $1.00 per ADS in cash, which would value the deal at roughly $477.6 million, if OTL-200 is approved by the US Food and Drug Administration.
Orchard's OTL-200, a gene therapy candidate for metachromatic leukodystrophy (MLD), is currently under priority review at the FDA. The ex vivo autologous hematopoietic stem cell gene therapy is designed to treat certain patients with early onset of the rare genetic disorder, which is caused by mutations in the ARSA gene that lead sulfatides to accumulate in cells.
The drug is already approved by the European Commission and UK Medicines and Healthcare Products Regulatory Agency, where it is branded Libmeldy (atidarsagene autotemcel).
The acquisition will provide Kyowa Kirin with a portfolio of genetic medicines and support Orchard's launch of OTL-200 and development of other clinical and preclinical programs including gene therapies for mucopolysaccharidosis type I Hurler syndrome and mucopolysaccharidosis type IIIA.
"Joining Kyowa Kirin's global network ensures we are well-resourced to progress anticipated commercialization of OTL-200 in the US, if approved, continue investing in initiatives aimed at accelerating Libmeldy growth in Europe, capitalize on opportunities for global expansion, as well as advance our next-in-line neurometabolic programs in MPS disorders and earlier-stage research programs," Orchard Cofounder and CEO Bobby Gaspar said in a statement.
Orchard could potentially extend its gene therapy technology into other specialties that Kyowa Kirin has experience in, such as oncology and autoimmune diseases, the companies said.
The transaction is expected to close in the first quarter of next year, after which Orchard will become a wholly owned subsidiary of Kyowa Kirin.
In Thursday afternoon trade on the Nasdaq, shares of Orchard were up 98 percent at $15.98.