Seattle Genetics to acquire Cascadian Therapeutics for $614m to bolster oncology portfolio

Seattle Genetics, a leader in oncology biotechnology, has announced the acquisition of Cascadian Therapeutics for approximately $614 million, a strategic move to enhance its portfolio of solid tumor treatments. The acquisition, which involves Seattle Genetics paying $10 per share in cash for the California-based company, is set to significantly advance its research in cancer therapies, particularly in breast cancer.

Enhancing Oncology Research with Tucatinib

A key element of this acquisition is the addition of tucatinib, a late-stage breast cancer program, to Seattle Genetics’ oncology pipeline. Tucatinib is a small molecule tyrosine kinase inhibitor (TKI) targeting HER2, a growth factor receptor overexpressed in several types of cancer including breast, colorectal, ovarian, and gastric cancers.

Cascadian Therapeutics has been evaluating tucatinib in the HER2CLIMB phase 2 clinical trial, focusing on HER2-positive metastatic breast cancer patients. The drug has shown promise in early trials, demonstrating clinical activity and tolerability in combination with capecitabine and trastuzumab, including in patients with brain metastases.

Strategic Implications of the Acquisition

Clay Siegall, President and CEO of Seattle Genetics, commented on the acquisition: “This acquisition would enhance our late-stage clinical pipeline with a potentially best-in-class, orally available and highly selective TKI for patients with HER2-positive metastatic breast cancer. Tucatinib would complement our existing pipeline of targeted cancer therapies, provide a third late-stage opportunity for a commercial product in solid tumors, and expand our global efforts in breast cancer.”

Scott Myers, President and CEO of Cascadian Therapeutics, also remarked on the deal: “This agreement represents a very positive outcome for patients with HER2-expressing cancers, our employees, and for our stockholders. Seattle Genetics has the development and commercial capabilities and the resources needed to more fully realize the potential of tucatinib as a new best-in-class treatment option for metastatic breast cancer, colorectal cancer, and potentially for other indications.”

This acquisition is likely to have a significant impact on the market for cancer treatments, particularly for HER2-positive cancers.

By acquiring Cascadian Therapeutics, Seattle Genetics not only strengthens its position in the oncology market but also broadens its therapeutic reach across additional cancer types.

The acquisition of Cascadian Therapeutics by Seattle Genetics marks a pivotal development in the oncology sector, promising to bring innovative treatments to the forefront of cancer therapy.