ONO Pharmaceutical Solidifies $2.4 Billion Acquisition of Deciphera

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ONO Pharmaceutical Co., Ltd and Deciphera Pharmaceuticals, Inc., a pharma manufacturer focused on cancer medication, has reached a definitive merger agreement. Per the deal, ONO will be purchasing all of Deciphera’s common stock for $25.60 per share in cash via tender offer; this will be proceeded by a merger of Deciphera for $2.4 billion.

This merger capitalizes off both parties’ belief in serving patients worldwide by providing new drugs to the marketplace. Deciphera is known for offering research and development services when it comes to kinase drug discovery, along with reputable commercial and sales platforms in both the United States and Europe.

For instance, Deciphera’s branded switch-control inhibitor for the treatment of fourth-line gastrointestinal stromal tumor (GIST), QINLOCK, is approved in the United States and other countries, but the company also offers a pipeline of medicines that are also in the works, such as vimseltinib, DCC-3116 (an ULK inhibitor).

Vimseltinib is a switch-control kinase inhibitor that has demonstrated promising clinical data for the treatment of tenosynovial giant cell tumor (TGCT). As a result, the deal allows ONO to expand its oncology presence, a main focus area for the company.

“Deciphera and ONO share a deep commitment to improve the lives of people living with cancer, and 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,” said Steven L. Hoerter, Deciphera’s president and CEO.

“Importantly, this acquisition delivers for all of Deciphera’s stakeholders. It provides immediate, compelling value for our shareholders, provides greater opportunities for our world-class team, and ultimately, greater hope for patients. I am excited about the future of the combined organization, and we are honored to contribute to the continued growth of ONO in the U.S. and around the world."

This transaction also yields fruitful benefits for ONO, especially in the area of business development.

“We expect that this acquisition of Deciphera will not only expand ONO's target oncology portfolio, but also accelerate ONO's business development in the United States and Europe, and strengthen kinase drug discovery research,” noted Gyo Sagara, representative director, chairman of the board, and CEO of ONO. "Deciphera's mission statement ‘Inspired by Patients: Defeat Cancer’ is aligned with ONO’s corporate philosophy ‘Dedicated to the Fight against Disease and Pain.’ We respect the innovative culture of Deciphera and look forward to working together to drive further growth for both ONO and Deciphera.”

Reference

Deciphera Pharmaceuticals to be Acquired by ONO Pharmaceutical For $2.4 Billion. Business Wire. April 29, 2024. Accessed April 30, 2024. https://www.businesswire.com/news/home/20240429316382/en/Deciphera-Pharmaceuticals-to-be-Acquired-by-ONO-Pharmaceutical-For-2.4-Billion