Lantheus Holdings has signed an agreement to acquire oncology company Progenics Pharmaceuticals in an all-stock transaction.
As per terms of the deal, Progenics shareholders will secure 0.2502 shares of Lantheus stock for each share of Progenics stock, representing around 35% aggregate ownership interest in the combined entity.
Lantheus president and CEO Mary Anne Heino said: “A long-term pioneer in medical diagnostics, Lantheus remains an industry leader in radiopharmaceuticals as well as the world-wide leader of ultrasound contrast agents.
“With this combination, we broaden our reach in emerging uses of radioisotopes for precision diagnostics and the exciting and expanding field of radiopharmaceuticals in oncology treatment.”
Progenics is involved in the development and commercialisation of targeted medicines and artificial intelligence for cancer. It also plays a key role in the development of diagnostics to guide physicians and therapeutics that treat patients.
The combined company will include additional radiopharmaceutical products for precision diagnostics and therapeutics diagnostics and therapeutics in the field of oncology, as well as related artificial intelligence platform with a 510(k) approved application in oncology.
The combined entity will continue to conduct operations from headquarters in North Billerica of Massachusetts, upon completion of the deal.
At present, Progenics’oncology-focused portfolio includes three FDA-approved products, including Azedra that was approved in July 2018.
Azedra is claimed to be the first and only FDA approved product used to treat adult and pediatric patients 12 years and older for the ultra-orphan indications of pheochromocytoma and paraganglioma.
The other approved products of Progenics are oral and subcutaneous formulations of Relistor, which are licenced to Bausch Health Companies.
Subject to approval by Lantheus and Progenics stockholders, regulatory approvals, and customary closing conditions, the deal is expected to be completed in the first quarter of 2020.
Progenics CEO Mark Baker said: “Today marks the beginning of an exciting new chapter for Progenics. This combination unlocks additional value for stakeholders and stockholders alike through Lantheus’ enhanced resources and R&D capabilities, proven commercial expertise and complementary portfolio of products.”
In May this year, Lantheus Holdings collaborated with NanoMab Technology to provide a novel biomarker for clinical development and management of immuno-oncology therapies.