Biocryst Pharma sells European business for European Rare Virus for $250 million
Biocryst Pharmaceuticals is selling European rights and assets for $250 million, a rare disease drug developers will use to pay off debts.
The buyer is a privately held recruit gentleman. In addition to making a payment forward, the terms of the deal announced Friday that North Carolina-based Biocrystal Triangle Park was associated with the sale of the drug Orladeyo in Central and Eastern Europe.
Orladeyo was developed for hereditary angioedema (HAE), a hereditary disease that causes swelling and attacks in various parts of the body. These attacks can become fatal when they close the patient's airways. The BioCryst drug is an oral small molecule inhibitor of Kallikrein, a protein that plays a role in swelling and inflammation that develops during HAE attacks. The FDA approved BioCryst's former daily medicine in 2020 to prevent HAE attacks in adults and children aged 12 and over. The following year it won a marketing license in Europe.
Neophered Gentili's drug partnership with Merck focuses on diabetes products, as well as the Mek derivative Organon, across multiple therapeutic areas. The Milan, Italy-based pharmaceutical company also has an alliance with Teva Pharmaceutical for asthma DUORESP SPIROMAX. The company said it has expanded its business by landing European rights on Orladeyo and gained a place in rare diseases.
Biocryst and Neophered Gentili hope to close the deal in early October. BioCryst said it will use the proceeds to retire $249 million, remaining debt, eliminating about $70 million in future interest payments. The sale of European operations will also save about $50 million in annual costs for biological crystals. The company is expected to end with about $700 million in cash in 2027, an increase of $400 million from its 2027 cash guide. CEO Jon Stonehouse said in a prepared statement that BioCryst's increased profitability puts the company in a stronger position to continue growing the Orladeyo business and drug pipeline. The company can also explore external opportunities.
Orladeyo is the main source of revenue for BioCryst with sales of $437.6 million, according to the company's annual report. Of these, a total of $385.9 million comes from the United States, and Orladeyo's next growth opportunity is attracting young children. The oral granule formulation of the drug is subject to priority review by the FDA to prevent HAE attacks in children aged 2 to 11 years; regulatory decisions are expected to be made by September 12. Takeda Pharmaceutical's Kallikrein inhibitor Takhzyro is also approved for the prevention of HAE in young children, but is administered by injection. BioCryst has global rights to Orladeyo oral granules, which will provide easier administration options for young children.
Patients aged 12 and over have other HAE drugs, but they are all considered injections. The drug ruconest in the drug group is a C1 esterase inhibitor. Two weeks ago, CSL Behring landed with the FDA approval of Andembry, an inhibitor of the plasma protein called Factor XIIA.
Kalvista Pharmaceuticals has a once-daily oral Kallikrein inhibitor Sebetralstat, currently under FDA review. Earlier this month, Kalvista revealed that the FDA said it would not meet the June 17 regulatory decision date. Kalvista is also studying the drug for children aged 2 to 11 years.
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