==Orchard Therapeutics (ORTX) to be acquired by Kyowa Kirin for $16.00 per ADS in cash

 

Orchard Therapeutics to be acquired by Kyowa Kirin for $16.00 per ADS in cash plus an additional contingent value right of $1.00 per ADS

• Kyowa Kirin Co., a Japan-based global specialty pharmaceutical company creating innovative medical solutions utilizing the latest biotechnology, and Orchard Therapeutics announced the companies have entered into a definitive agreement under which Kyowa Kirin will acquire Orchard Therapeutics for $16.00 per American Depositary Share in cash (~$387.4 million, or 57.3 billion), under which Orchard shareholders will hold an additional contingent value right of $1.00 per ADS. An additional $1.00 CVR will be paid for a total of $17.00 per ADS, or approximately $477.6 million (70.7 billion) if the conditions are met.
• Orchard Therapeutics' portfolio comprises Libmeldy (atidarsagene autotemcel), also known as OTL-200, intended for eligible patients with early-onset metachromatic leukodystrophy (MLD), a rare and life-threatening inherited disease of the body's metabolic system. In the most severe form of MLD, babies develop normally but in late infancy start to rapidly lose the ability to walk, talk and interact with the world around them. Libmeldy is approved by the European Commission (EC) and UK Medicines and Healthcare products Regulatory Agency (MHRA) for the treatment of "late infantile" and "early juvenile" MLD patients. It is currently an investigational drug under Priority Review by the Food and Drug Administration (FDA) with a Prescription Drug User Fee Act (PDUFA) goal date of March 18, 2024.

Kyowa will also pay $1 per ADS if Orchard's gene therapy for metachromatic leukodystrophy, or MLD, gains Food and Drug Administration approval. MLD is a life-threatening genetic disease that causes fats to build up in the brain and other areas of the body, leading to loss of sensory, motor and cognitive function. The MLD gene therapy, Orchard's leading drug, is already approved in Europe.

"This is an exciting opportunity designed to accelerate the realization of our shared vision of ending the devastation caused by severe genetic diseases and life-changing value in medical care," Orchard Chief Executive Bobby Gaspar said in a statement.

ORTX Stock: Stem Cell-Based Gene Therapy

Orchard has a handful of gene therapies in testing for neurological and immunological diseases.

The company's platform involves removing a patient's own blood stem cells, genetically modifying them and then reinserting the cells back into the patient. Orchard hopes doing this will correct the underlying cause of the disease in a single treatment.

In addition to its MLD gene therapy, Orchard is also testing a Wiskott Aldrich syndrome gene therapy. Patients with this immune disorder face recurrent and severe infections, autoimmunity, eczema and severe bleeding episodes.

Gaspar, Orchard's CEO, says the Kyowa Kirin acquisition will bolster Orchard's ability to sell OTL-200, the MDL gene therapy, in the U.S. if approved. The drug sells in Europe as Libmeldy.