ONO Pharmaceutical expands oncology portfolio with acquisition of Deciphera

ONO Pharmaceutical, out of Japan, is in the process of acquiring cancer-therapy maker Deciphera Pharmaceuticals for US$2.4 billion. 

The definitive merger agreement constitutes ONO buying all available shares of Deciphera, for US$25.60 per share in cash, bringing the total value of the merger to US$2.4 billion, one of the largest purchases in the pharma industry for the year. Deciphera will continue as a fully owned subsidiary of ONO Pharmaceutical. 

“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,” ONO’s CEO Gyo Sagara explained.

Deciphera focuses on innovative cancer therapeutics, and specialises in kinase biology. Currently, they have one drug as a mainstay in the market. The therapy, QINLOCK® (ripretinib), is a KIT inhibitor, and approved in over 40 countries for the treatment of fourth-line gastrointestinal stromal tumour. 

The other therapeutic in the Deciphera pipeline is Vimseltinib, a CSF-1R inhibitor, which has demonstrated statistically significant and clinically meaningful efficacy when tested in patients with tenosynovial giant cell tumours, in the Phase III MOTION trial. The results will be used to evaluate the drug for approval by US and EU bodies by the end of the year. 

The addition of these therapeutics will strengthen ONO Pharmaceutical’s oncology pipeline, which they are trying to expand. The merger follows on from a drug discovery collaboration agreement with PRISM BioLab. The new partnership hopes to accelerate drug discovery in the oncology space by to identifying and developing drug candidates of a protein-protein interaction (PPI) target, using PRISM’s proprietary PepMetics® technology. 

“We are actively engaged in creating innovative drugs through open innovation to address unmet medical needs across a wide range of diseases,” stated Seishi Katsumata, Executive Director, Discovery & Research of ONO.

Sagara stated:

“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. 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.” 

Sources:

1. ONO Pharma. ONO Enters into a Definitive Agreement to Acquire Deciphera Pharmaceuticals. [Date accessed 01/05/2024] www.ono-pharma.com/en/news/20240430.html 

2. ONO Pharma. ONO Enters into a Collaboration Agreement with PRISM BioLab to Generate Novel Drug Candidates in the Oncology Area. [Date accessed 01/05/2024] www.ono-pharma.com/en/news/20240425.html