ONO Pharmaceutical to acquire Deciphera Pharmaceuticals in $2.4bn deal
ONO Pharmaceutical, Co., Ltd., has entered into a definitive agreement to acquire all outstanding shares of Deciphera Pharmaceuticals, Inc. (NASDAQ: DCPH), for $25.60 per share in cash, in a deal valued at approximately $2.4 billion. This acquisition represents a premium of 74.7% over Deciphera’s closing share price as of April 26, 2024, highlighting the strategic importance of this merger in ONO’s global expansion and pipeline enhancement strategies.
The deal, which is one of the significant mergers in the pharmaceutical sector, will see Deciphera become a wholly owned subsidiary of ONO, combining their strengths in oncology and kinase biology. Deciphera’s portfolio includes QINLOCK®, a KIT inhibitor approved in over 40 countries for the treatment of gastrointestinal stromal tumor (GIST), and vimseltinib, a CSF-1R inhibitor showing promise in recent clinical trials.
Gyo Sagara, Representative Director, Chairman of the Board and Chief Executive Officer of ONO, emphasized the strategic fit of the acquisition: “This acquisition of Deciphera will not only expand ONO’s targeted oncology portfolio but also accelerate our business development in the United States and Europe, and strengthen kinase drug discovery research.”
Steven L. Hoerter, President and Chief Executive Officer of Deciphera, commented on the merger’s potential to enhance patient care: “The transaction announced today enables us to make even greater impact for patients. Together, we expect to advance and accelerate each organization’s important work through combined research and development capabilities and a global commercial footprint.”
The acquisition is structured as a tender offer to be followed by a merger, with completion anticipated in the third calendar quarter of 2024, subject to regulatory approvals and customary closing conditions. The tender offer is expected to commence shortly and remain open for 20 business days, unless extended.
The Boards of Directors of both ONO and Deciphera have unanimously approved the transaction. Key stakeholders in Deciphera, holding approximately 28% of the outstanding shares, have entered into agreements supporting the tender offer, ensuring a smooth progression towards finalizing the deal.
This merger not only reflects ONO’s commitment to enhancing its oncology and immunological disease capabilities but also demonstrates its strategic intention to leverage Deciphera’s established commercial and R&D operations in the United States and Europe. The combined entity is poised to become a more formidable player in the global pharmaceutical landscape, driving innovation and delivering significant value to stakeholders and patients alike.