French pharmaceutical firm Servier has signed an agreement to acquire the oncology business of Shire for $2.4bn.
Under the deal, Servier will acquire oncology treatment Oncaspar (pegaspargase), as well as ex-US rights of Onivyde (irinotecan pegylated liposomal formulation).
Oncaspar is a component of multi-agent treatment for acute lymphoblastic leukemia, while Onivyde is a component of multi-agent treatment for metastatic pancreatic cancer post gemcitabine based therapy.
The deal also covers Calaspargase Pegol (Cal-PEG), which is under FDA review for the treatment of ALL, and early stage immuno-oncology pipeline collaborations.
Servier believes that the acquisition will help the firm to establish direct commercial presence in the US, in addition to expanding its oncology pipeline and portfolio of in-market drugs.
The French pharmaceutical firm will market its products in the US through newly-created subsidiary, Servier Pharmaceuticals.
The deal is expected to complete in the second or third quarter of this year.
Servier Group president Olivier Laureau said: “It is a major step in the transformation of the Group, allowing us to establish a direct commercial presence in the US, as well as to strengthen our portfolio of marketed products in the ex-US territories where Servier is already present.”
Shire CEO Dr Flemming Ørnskov said: “This transaction is a key milestone for Shire, demonstrating the clear value embedded in our portfolio. While the Oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire’s longer-term strategy.”
Servier carries out research activities in five areas, including cardiovascular, immune-inflammatory and neuropsychiatric diseases, cancers and diabetes, as well as generic drugs.
With operations in 148 countries, Servier employs around 21,600 people across the globe, and has reported a turnover of €4.15bn in 2017.
Shire is engaged in the development of novel therapies across various rare disease areas, including hematology, immunology, genetic diseases, neuroscience, as well as ophthalmics and oncology.
Image: Shire location in Lexington Massachusetts. Photo: courtesy of John Phelan.