Apr 05, 2017
Global Biopharmaceutical Company from Rockville, Sucampo Pharmaceuticals Inc., has gained acquisition of Gaithersburg-based rare disease company Vtesse Inc. for $200 million. Vtesse is a privately held rare disease company. This acquisition will give Sucampo with VTS-270 that is presently in a crucial study for the treatment of Neimann-Pick Disease Type C1.
Sucampo financed the acquisition with the help of the issuance of 2,782,678 shares of Sucampo Class A common stock and $170 million of in-hand cash. Also, there was no funding used from any external source.
Neimann-Pick Disease is a type of genetic mutation which leads to a loss of specific enzyme in the body that is always fatal post early childhood. This genetic disorder starts taking a brunt on the lives of those who are affected by birth to early childhood and its prevalence is predicted between 1:100,000 to 1:150,000 live births.
Moreover, the acquisition will repose on the capabilities of the company, development on the global platform and will aim on specific areas of high and medical needs which have not been fulfilled. Subsequent to the acquisition, Vtesse team will persist to back the progression of VTS-270.
By the mid of 2018, Vtesse’s completely enrolled clinical trial on the global platform is estimated to show results, with the product’s predicted launch in 2019. In summation to the price of purchase, Vtesse shareholders will be provided further added payments as royalties depending upon the sales of the final product. As earlier mentioned, in order to pay for the acquisition, Sucampo has used $170 million in cash and issued $30 million in shares.
Both these companies also have a strategized plan to launch a foundation to back additional future research pertaining to the disease, and Vtesse shareholders have reserved a portion of the profits to attribute to the foundation. For which Sucampo has agreed to match to the level.
Sucampo CEO Peter Greenleaf said, "We welcome the employees of Vtesse to our team and look forward to accelerating the global development of VTS-270 in the hopes of bringing this novel treatment to patients afflicted by Niemann-Pick Disease Type C1 in the U.S. and around the globe.”
Vtesse founder, president and CEO Ben Machielse says that both the companies together will speed up the global development and commercialization of VTS-270, trusting on the corresponding capabilities of Sucampo.
The acquisition will strike Sucampo’s bottom line this year. The company has already de-escalated its 2017 net income predictions to $56 to $66 million from $80 to $90 million.
Per share net profits are anticipated to descend from $1.35 to $1.50 per share to $1 to $1.10 per share. Also, Sucampo has not altered its revenue projection that stays $220 million to $230 million this year.
Apr 11, 2017
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