Amicus Snaps up Scioderm and its Lead EB Drug in Deal Worth $847 Million
August 31, 2015
By Alex Keown, BioSpace.com Breaking News Staff
CRANBURY, N.J. – Amicus Therapeutics, Inc. inked a deal to acquire the privately-held biopharmaceutical company Scioderm Inc., Inc. in a deal worth up to $847 million, the company announced this morning.
The acquisition places Scioderm’s lead product candidate Zorblisa, a topical cream for the treatment of Epidermolysis Bullosa (EB) into Amicus’ rare and orphan disease pipeline. In a statement, John F. Crowley, Amicus’ chief executive officer, who also serves on Scioderm’s board of directors, touted Zorblisa as a medication that will bring relief to the community of patients living with EB.
"EB is a disorder that is utterly devastating and painful as it causes extremely fragile skin that blisters and tears from minor friction or trauma. In many children it leads to severe complications and a very early death,” he said. “We believe we are well-positioned to rapidly complete the clinical development of Zorblisa and to make Zorblisa commercially available for all EB patients as quickly as possible.”
Zorblisa is currently in Phase III trials. In 2013 the drug received a Breakthrough Therapy designation from the U.S. Food and Drug Administration (FDA) after early trials showed the drug’s ability to help wounds across all EB subtypes heal.
Amicus estimates Zorblisa will generate approximately $1 billion in annual revenues. Current treatments for EB have a monthly price-tag of $10,000 to $15,000. The company said most treatments are palliative in nature and consists mainly of “bandaging, treating the open wounds to prevent infection and trying to manage patients' pain.” There are an estimated 30,000 to 40,000 people “in major markets” diagnosed with EB, the company said.
Scioderm CEO Robert Ryan said the acquisition of his company will provide additional expertise and resources to allow Zorblisa to come to market.
Under terms of the deal, Amicus will pay $229 million in a combination of cash and new shares of Amicus stock. Additionally, Amicus will pay up to $361 million in clinical milestone payments and another $257 million in sales milestone payments. was down slightly this morning following news of the deal. Company stock was trading at $14.50 per share, down from the opening price of $14.87 per share.
Amicus’ deal with Scioderm fits into the company’s plan of bringing additional first-in-class rare-disease drugs into the company. Crowley told The Street he proposed the deal to Scioderm earlier in 2015.
“We entered into an exclusive negotiating period and convinced them that we were best suited to drive them forward,” Crowley told The Street.
Amicus' lead product Galafold, used in the treatment of Fabry disease, is under review in Europe. The company submitted the drug for regulatory approval in June. If approved the drug could be launched commercially in 2016. Amicus plans to submit the Galafold to the FDA for approval before the end of the year, which also sets up the possibility of a 2016 approval and launch, The Street reported.