Date: 2017-03-16
Type of information: Product acquisition
Compound: Emflaza™ (deflazacort)
Company: PTC Therapeutics (USA - NJ) Marathon Pharmaceuticals (USA - IL)
Therapeutic area: Rare diseases - Genetic diseases - Neuromuscular diseases
Type agreement: product acquisition
Action mechanism:
Disease: Duchenne muscular dystrophy
Details: * On Mar 16, 2017, PTC Therapeutics announced it has entered into an asset purchase agreement with Marathon Pharmaceuticals, to acquire all rights to Emflaza™ (deflazacort). The drug is the first treatment approved in the United States for all Duchenne muscular dystrophy patients five years and older, regardless of their genetic mutation. Emflaza™ reduces inflammation, which is critical to preserving muscle function and delaying disease progression. It received FDA approval on February 9, 2017.
Financial terms:
Latest news:
Under the terms of the asset purchase agreement, Marathon will receive total upfront consideration of $140 million upon closing of the transaction, comprised of approximately $75 million in cash and approximately $65 million in PTC common stock, subject to a maximum 6.9 million share limit (with any shortfall to be made whole with additional cash consideration). Marathon is also entitled to receive payments from PTC based on annual net sales of Emflaza™ beginning in 2018, which PTC expects will range as a percentage of net sales between the low to mid-20s on a blended average basis. In addition, Marathon has the opportunity to receive a single $50 million sales-based milestone.
The transaction is expected to be accretive to both earnings and cash flow beginning in 2018. The transaction is expected to close in the second quarter of 2017, subject to customary closing conditions, including receipt of clearance under the Hart-Scott-Rodino Act.
