Belgian drugmaker UCB has agreed to pay $1.9 billion Acquired Zogenix, the company’s flagship drug has been commercialized for a specific rare type of epilepsy and has the potential to treat other rare forms of neurological disorders.
Under the terms of the acquisition agreement announced Wednesday, UCB will pay $26 per share of Zogenix in cash. The price represents a 72% premium to the average share price in the 30 days prior to the deal announcement.However, it’s still below the $29.19 a share the Emeryville, Calif.-based company’s stock has reached after 2020 FDA approves Fintepla, a treatment for seizures caused by Dravet syndrome, a rare and life-threatening form of epilepsy.
Zogenix shareholders could earn more. Fintepla is also being developed for Lennox-Gastaut syndrome, another rare form of epilepsy. The deal includes a contingent value right to add $2 per share purchased by UCB. The additional payment is contingent on securing EU approval of Fintepla for Lennox-Gastaut syndrome by the end of next year.
Dravet is reported to be rare, affecting 1 in 20,000 to 40,000 people Statistical data Quoted by Epilepsy Foundation. It has historically been treated with anticonvulsants. That changed in 2018, when the FDA approved the drug Epidelex, developed by GW Ph GW Pharmaceuticals (now part of Jazz Pharmaceuticals), and Diacomit, a product from France’s Biocodex.
Fintepla, Zogenix’s only commercial product, launched in the US in July 2020. About six months later, the European Medicines Agency approved Zogenix for Dravet syndrome. However, Fintepla has yet to become a significant revenue generator. The company reported sales of $21.4 million in the third quarter of 2021, up from $1.5 million in the same period in 2020. For the nine months ended September 30, 2021, Zogenix reported Fintepla sales of $51.3 million. At Dravet, Fintepla competes with Epidelex, developed by GW Pharmaceuticals (now part of Jazz Pharmaceuticals), and Diacomit, a product from France’s Biocodex.
Other companies are developing treatments for Dravet and Lennox-Gastaut. last year, Takeda pays partner Ovid Therapeutics $196 million to acquire biotech’s share of soticlestat as it prepares for Phase 3 testing. PTC Therapeutics, Supernus Pharmaceuticals and Stoke Therapeutics are biotechnology companies in various stages of development of the Dravet program.
The UCB neurology pipeline currently includes an epilepsy program. The company is in late-stage clinical trials of the oral inhaled anxiety drug alprazolam.Using UCB’s Staccato inhaler technology acquired through 2020 Acquired Engage Therapeutics, the drug-device combination aims to be a rescue treatment for epilepsy. By acquiring Zogenix, UCB has acquired a commercialized epilepsy product that can now compete in the Dravet market, and possibly other forms of epilepsy in the future. In addition to Lennox-Gastaut, Zogenix is developing drugs to treat CDKL5 deficiency, another rare form of epilepsy.
“As a complement to UCB’s existing therapeutic offerings, the acquisition of Zogenix provides UCB with an approved drug for the treatment of life-threatening, rare infantile and childhood-onset epilepsy characterized by frequent and severe intractable seizures , treatment is particularly challenging,” said Zyl, Charl van UCB executive vice president, head of neurology and European/international markets, in a prepared statement. “Leveraging our deep expertise, experience and global capabilities, we plan to accelerate patient access to treatment.”
The boards of both UCB and Zogenix have unanimously approved the acquisition, but completion of the transaction requires a majority of Zogenix’s shareholders to bid. The two companies expect to close the transaction by the end of the second quarter of this year.
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