Zevra Therapeutics to Acquire Acer Therapeutics
Both companies have a focus to developing and commercializing treatments for rare diseases with a strong focus on patients and supporting communities with little to no existing therapeutic options.
Zevra Therapeutics and Acer Therapeutics announced on Aug. 31, 2023 that they have entered a definitive agreement where Zevra would acquire Acer in a merger transaction having a total potential value for Acer stockholders of up to $91 million, according to a press release.
Additionally, additional cash payments are possible in relation to the Contingent Value Rights with respect to milestones involving Acer’s early-stage program ACER-2820 (emetine). Zevra also purchased Acer’s secured debt at a discount from Nantahala Capital through a series of transactions in capital efficient structure, according to the release. Both companies have a focus to developing and commercializing treatments for rare diseases with a strong focus on patients and supporting communities with little to no existing therapeutic options.
“We believe that Acer’s portfolio of rare disease programs, including the recent US commercial approval of OLPRUVA for urea cycle disorders UCDs, is a perfect strategic fit for Zevra and creates significant opportunity for us to positively impact patient lives while creating shareholder value,” said Joshua Schafer, chief commercialization officer and executive vice president of Business Development of Zevra Therapeutics, in a press release. “We are excited about Acer’s clinical programs and are confident in the potential of OLPRUVA to bring UCD patients a more convenient and cost-effective treatment option over current therapies. Acer would bring unique rare disease operations and capabilities that would serve as a foundation to support the commercialization of Zevra’s pipeline as it advances.”
“This merger would support Zevra's vision of becoming a leading rare disease company bringing life-changing therapies to patients with a significant unmet need,” said Christal Mickle, Zevra’s interim chief executive officer and chief development officer in the press release. “The commercial launch of OLPRUVA in the US requires a small, highly-focused commercial team, which is complementary to what we intend to build for arimoclomol, our product candidate for the treatment of Niemann-Pick disease Type C (NPC). We believe there is potential to realize significant synergies across our commercial organizations as both UCDs and NPC are metabolic related conditions and there is overlap among those physicians that treat both disorders.”
Source: Zevra Therapeutics
