(Reuters) - Privately held Italian drugmaker Menarini Group said on Monday it would buy U.S. company Stemline Therapeutics Inc in a deal valued at up to $677 million, looking to gain access to a U.S. approved drug for a rare blood disease.
Stemline’s lead cancer drug Elzonris, which brought in $43.2 million in estimated net revenue in 2019, would bolster Menarini’s cancer drug portfolio. Stemline shareholders will get $12.50 per share, involving an upfront payment of $11.50 in cash, which represents a premium of more than 140% to Stemline’s closing price on Friday. Each shareholder would be entitled to an additional $1 in cash per share upon completion of certain milestones, the companies said.
Menarini will support further development of Elzonris and enable global expansion by leveraging its infrastructure in Europe and other areas outside the United States, the drugmaker said.
Elzonris, approved by the U.S. Food & Drug Administration in 2018, is a treatment for blastic plasmacytoid dendritic cell neoplasm (BPDCN), a rare disease of the bone marrow and blood that affects multiple organs in adults and children aged two years and above.
Goldman Sachs International was acting as exclusive financial adviser to Menarini. PJT Partners and BofA Securities were financial advisers to Stemline.
Reporting by Manas Mishra and Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli