LG Chem to acquire US biotech company Aveo Oncology for $566m

LG Chem acquisition of Aveo Oncology : South Korea’s LG Chem has entered into a definitive agreement to acquire Aveo Oncology, a US-based biotech company, in an all-cash transaction valued at $566 million.

The acquisition of Aveo Oncology is expected to increase the commercial footprint of LG Chem’s life sciences division in the US and diversify its oncology therapies pipeline. Besides, it will fast-track the development and commercialization of cancer therapies by LG Chem.

As per the terms of the deal, shareholders of the Nasdaq-listed Aveo Oncology will be paid $15 per share.

The lead product of Aveo Oncology is FOTIVDA (tivozanib), which has approval in the US for the treatment of adult patients with relapsed or refractory advanced renal cell carcinoma (RCC) after two or more prior systemic therapies.

Commenting on LG Chem acquisition of Aveo Oncology, Shin Hak-Cheol — LG Chem CEO, said: “With its track record of clinical success, deep pipeline of innovative therapies and continued growth trajectory following the successful commercialization of FOTIVDA, Aveo is the perfect partner for LG Chem Life Sciences.

“This transaction represents the next step in our portfolio transformation towards higher growth markets and provides a strong commercial foundation in oncology as we continue to develop our anti-cancer offerings.”

Aveo Oncology will establish and operate as the US commercial foundation for LG Chem Life Sciences’ oncology segment upon completion of the transaction, according to the South Korean firm.

Michael Bailey — Aveo Oncology President and CEO, commenting on LG Chem acquisition of Aveo Oncology, said: “LG Chem shares Aveo’s deep commitment to patients and vision of developing innovative therapies designed to provide substantial impact in the lives of cancer patients with clear unmet medical needs.”

Aveo Oncology’s shares will not trade on the Nasdaq upon completion of the transaction and the combined entity will be headquartered in Seoul, South Korea.

BofA Securities and Moelis & Company are serving as exclusive financial advisors to LG Chem and Aveo Oncology, respectively.

Latham & Watkins and WilmerHale are acting as legal counsels for LG Chem and Aveo Oncology, respectively.

Expected to complete in early 2023, LG Chem acquisition of Aveo Oncology is subject to customary closing conditions, including approval by the US firm’s shareholders and receipt of regulatory approvals.