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Japan’s ONO Acquires US Cancer Drugmaker Deciphera for $2.4 Billion in an All-Cash Deal

  • April 29, 2024

ONO DCPH merger

Japan’s ONO Pharmaceutical Co., Ltd will acquire cancer drugmaker Deciphera Pharmaceuticals, Inc (DCPH) for $2.4 billion to expand its oncology portfolio and its presence in the United States and Europe.

As per the terms in the agreement, ONO Pharmaceutical will acquire U.S.-based Deciphera at $25.60 per share in cash, representing a premium of 74.74% from the stock’s last close.

“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 Chief Executive Officer Gyo Sagara said.

Deciphera’s oral drug, Qinlock, to treat a type of gastrointestinal cancer received the U.S. Food and Drug Administration’s (FDA) full approval in 2020. The company also plans to seek a nod for vimseltinib, its experimental medicine to treat tenosynovial giant cell tumor, which forms in the soft tissues around joints.

Under the terms of the merger agreement, ONO has commenced a tender offer which will expire in 20 days, under which Desiphera will become a wholly-owned subsidiary of ONO. Some shareholders who own about 28% of Deciphera’s outstanding stock have already agreed to tender their shares and support the deal, which is expected to close in the third quarter of 2024.

For a comprehensive overview of the deal metrics, please refer to the following link:

Deal Metrics for the acquisition of Deciphera Pharmaceuticals, Inc (DCPH) by ONO Pharmaceutical Co., Ltd.

Editor’s Note: Baranjot Kaur contributed to this article.

Disclaimer: This article is intended for informational purposes only. It is recommended that readers conduct their own research and due diligence before making any investment decisions related to the securities mentioned herein. We do not guarantee the accuracy or completeness of the information provided in this article.