Ligand Pharmaceuticals announced it will acquire biotech company APEIRON Biologics for $100 million. The all-cash deal includes an additional $28 million if APEIRON’s royalties exceed predetermined thresholds by either 2030 or 2034, respectively, and is subject to a 30 day shareholder objection period.
Based in Austria, APEIRON holds the royalty rights to QARZIBA (dinutuximab beta), which treats high-risk neuroblastoma. Neuroblastoma is a cancer that develops in the immature nerve cells of small children. It most commonly develops in and around the adrenal glands, which sit on top of the kidneys, and typically presents as abdominal pain and bowel disfunction. Survival rates vary based on risk group, which depends on the patient’s age, how far the cancer has spread, the presence of certain genes, and other factors. Children in the low and intermediate risk group have a survival rate over 5 years, while children the high-risk group survive 5 years just 50% of the time. QARZIBA is focused on treating this latter group.
“QARZIBA is the only immunotherapy for high-risk neuroblastoma marketed across Europe and in other parts of the world,” according to the deal’s press release. “We have spent more than 20 years translating academic research into therapeutic products for diseases with high unmet needs. Our team was honored to help bring QARZIBA to the young patients who need it.”
According to the European Commission, the United States leads the world in developing biotech patents, producing 39% of all such patents in 2020. The European Union follows with a 18% share, and China developed 10%. Different regions specialize in varying types of biotechnology. The U.S. and U.K. focus on “red” biotech, which is healthcare/pharma-related technology, while Japan and China produce patents predominantly in “white” biotech, which is industry-related, including such uses as solvents, enzymes in detergents, fabric pigments, and bio processes for paints and coating.
Smaller biotech companies are often acquired by larger pharmaceutical firms, with the vast resources necessary to pass regulatory hurdles and market the technology.
According to DealPulse’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly announced transactions, Ligand Pharmaceuticals is advised by law firms McDermott Will & Emery and E+H Rechtsanwälte GmbH. APEIRON Biologics is advised by law firms Baker & McKenzie and DORDA.
