Actelion to acquire Ceptaris for $250m if rare disease drug approved

Switzerland-based biopharma company, Actelion Ltd has entered an agreement to acquire privately-held US speciality pharma company, Ceptaris Therapeutics for $250 million.

Under the terms of the agreement, the merger is contingent upon certain closing conditions, including US Food and Drug Administration (FDA) approval of Ceptaris' product, Valchlor (mechlorethamine). If approved, Valchlor would be the first and only FDA-approved topical formulation of mechlorethamine for the treatment of early-stage mycosis fungoides-type cutaneous T-cell lymphoma. The Prescription Drug User Fee Act (PDUFA) date is set for the 27th August 2013.

"Should the FDA approve VALCHLOR and Actelion acquire Ceptaris, we would be able to offer this meaningfully differentiated medicine to patients who today are dependent on formulations prepared locally by compounding pharmacies in a non-standardized environment. At the same time, we would leverage our existing knowhow and infrastructure in the fields of orphan and ultra-orphan indications when appropriately commercializing VALCHLOR to specialists in the field of dermatology and oncology."

Jean-Paul Clozel, M.D. and Chief Executive of Actelion.

Under further terms of the merger agreement, Actelion has already paid $25 million to Ceptaris upon signing and will pay a further $225 million to Ceptaris' shareholders upon closing of the transaction.

"We believe that Actelion's expertise in rare diseases make it an ideal partner to deliver VALCHLOR to patients globally. We look forward to advancing VALCHLOR together to meet the needs of patients. We appreciate the ongoing support of our investors, led by Vivo Ventures (represented by Albert Cha), who have enabled us to develop VALCHLOR."

Stephen Tullman, President and CEO, Ceptaris Therapeutics, Inc.