Alexion to acquire Synageva to develop rare disease therapies
The transaction is expected to accelerate and diversify Alexion’s growing revenues
Alexion Pharmaceuticals and Synageva BioPharma have signed an agreement pursuant to which Alexion will acquire Synageva for a consideration of US$115 in cash and 0.6581 Alexion shares, for each share of Synageva, implying a total per share value of $230 based on the nine day volume-weighted average closing price of Alexion stock on 5 May 2015.
The acquisition strengthens Alexion’s global leadership in developing and commercialising transformative therapies for patients with devastating and rare diseases.
The transaction has been unanimously approved by both companies’ boards of directors and is valued at approximately $8.4bn net of Synageva’s cash. The transaction is expected to accelerate and diversify Alexion’s growing revenues, and Alexion expects to achieve annual cost synergies starting this year and growing to at least $150m in 2017. In addition, the transaction is expected to be accretive to non-GAAP earnings per share in 2018.
‘Synageva is an ideal strategic and operational fit for Alexion that aligns with what we know well and do well — providing life-transforming therapies to an increasing number of patients with devastating and rare diseases,’ said David Hallal, Chief Executive Officer of Alexion.
‘With strong ongoing Soliris growth in PNH and aHUS worldwide, and the anticipated 2015 global launches of Strensiq and Kanuma, we will accelerate and diversify our revenue growth. We are excited to create the most robust rare disease pipeline in biotech across a range of therapeutic modalities. Synageva is an outstanding company that shares Alexion’s commitment to serving patients with rare diseases, and together we will create increasing value for our stakeholders,’ he added.
‘Alexion is uniquely suited to advance Synageva’s mission to deliver life-saving therapies to patients whose diseases were once considered too rare for developing treatments,’ said Sanj K. Patel, President and Chief Executive Officer of Synageva. ‘As Kanuma moves closer toward patients who suffer from LAL deficiency, and the other pipeline programmes continue to progress, I am confident that this transaction will help to improve the lives of patients with LAL deficiency and other devastating, rare diseases for years to come.’
The addition of Kanuma expands Alexion’s premier global metabolic rare disease franchise. Alexion will leverage its proven expertise in rare disease education and diagnostics, and its 50-country operating platform, to maximise the opportunity to serve patients suffering from LAL-D.
The company expects that these efforts will result in more infants, children and adults with LAL-D receiving a rapid and accurate diagnosis and, following regulatory approvals for Kanuma, enable physicians to make better informed treatment decisions for their patients.
‘By every measure, Alexion is at the strongest and most promising point in our history given the strength of our clinical, commercial and operational performance and the depth of our team,’ said Leonard Bell, MD, Chairman of Alexion’s board of directors.
‘This transaction provides Synageva shareholders with immediate value and the opportunity to participate in Alexion’s long-term growth potential,’ said Felix Baker, PhD, Chairman of Synageva’s board of directors. ‘I am excited to be joining the board of Alexion, a leading, global biotechnology company that is aligned with the mission that Synageva was founded upon — to serve patients who would otherwise be left behind.’