Japan’s ONO Pharma to Acquire Deciphera Pharma

Moreover, acquiring Deciphera’s commercial capabilities in the United States and Europe will strengthen ONO’s global commercial presence

Japan’s leading pharmaceutical company, ONO Pharmaceutical has acquired Deciphera Pharmaceuticals, a prominent biopharmaceutical company in the United States.

This strategic acquisition is expected to boost ONO Pharmaceuticals portfolio and strengthen its position in the global pharmaceutical market. Deciphera Pharmaceuticals, known for its R&D in drug discovery, will offer its expertise to ONO Pharmaceutical.

However, the terms of the agreement have not been disclosed yet.

On the deal, Gyo Sagara, representative director, chairman of the board and CEO, ONO, said, “We expect that this acquisition of Deciphera will not only expand ONO’s targeted oncology portfolio, but also accelerate ONO’s business development in the United States and Europe, and strengthen kinase drug discovery research.”

Component of the Acquisition Deal

The pharmaceutical companies have entered into a definitive merger agreement under which ONO will acquire all outstanding shares of Deciphera common stock for $ 25.60 per share in cash.

The total equity value of the acquisition is approximately $2.4 billion, assuming that there are approximately 94.7 million outstanding shares of Deciphera common stock on a fully diluted basis.

The purchase price represents a premium of 74.7% to Deciphera’s closing share price of $14.65 on April 26, 2024, and a premium of 68.8% to Deciphera’s 30 trading day volume weighted average price as of April 26, 2024.

Through this acquisition, ONO is set to broaden its oncology pipeline, with a focus on near-term revenue enhancement, particularly through the immediate incorporation of Qinlock and the potential inclusion of vimseltinib.

Moreover, acquiring Deciphera’s commercial capabilities in the United States and Europe will strengthen ONO’s global commercial presence.

By leveraging Deciphera’s drug discovery capabilities, ONO will further accelerate its research and development capabilities in the field of oncology.

Sharing thoughts, Steven L Hoerter, president & CEO, Deciphera, said, “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 an 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.”

BofA Securities is acting as the financial advisor for ONO, with Greenberg Traurig as its legal counsel. KPMG FAS and KPMG Tax Corporation are providing accounting and tax advisory services, while WTW and Mercer Japan are handling human resource advisory for ONO.

On the other hand, J P Morgan Securities LLC is the financial advisor for Deciphera, and Goodwin Procter LLP is serving as its legal counsel.

Founded in 1947 by Ichibei Fushimiya, ONO Pharmaceutical is a leading pharmaceutical company based in Osaka, Japan. The company engages in the production, purchase, and sale of internal medicine, patch, and injectable medicine.

Deciphera Pharmaceuticals, on the other hand, was founded in 2003 by Daniel Flynn. Deciphera aims to deliver transformational medicines to patients, primarily focusing on the treatment of cancer. The company is dedicated to discovering, developing, and delivering important new medicines to patients for the treatment of cancer.