Actelion Inches Close to Ceptaris - Analyst Blog
August 26 2013 - 12:00PM
Zacks
Actelion (ALIOF)
is a step closer to acquiring privately-held Ceptaris Therapeutics
as the latter’s drug Valchlor has been approved by the U.S. Food
and Drug Administration (FDA), a significant precondition for the
previously announced acquisition.
We note that in Jul 2013, Actelion
had entered into an agreement with Ceptaris to acquire the latter,
contingent upon the FDA’s approval of Valchlor.
Valchlor gained approval for the
topical treatment of early-stage mycosis fungoides-type cutaneous
T-cell lymphoma. It can be used in patients who have previously
undergone skin-directed treatment. The New Drug Application (NDA)
was submitted to the FDA in Feb 2013.
As per the terms of the agreement,
Actelion paid $25 million to Ceptaris upon signing. An additional
$225 million will be paid on the closure of the transaction.
Moreover, Ceptaris' shareholders are entitled to milestone
payments.
Valchlor enjoys orphan drug status
in the U.S. We believe the acquisition will provide Actelion an
opportunity to build a portfolio beyond its pulmonary arterial
hypertension (PAH) franchise.
Actelion expects the transaction to
become cash-accretive before the end of 2014. We remind investors
that Actelion has drugs like Tracleer, Ventavis and Veletri in its
portfolio for the treatment of PAH along with Zavesca for the
treatment of Gaucher disease.
The diversification should bode
well for Actelion, in our view. The upcoming acquisition is also a
step forward in Actelion’s three pronged strategy of building a
specialty franchise along with growing the PAH franchise.
Actelion currently carries a Zacks
Rank #1 (Strong Buy). Other stocks that look attractive include
Biogen Idec Inc. (BIIB), Gilead Sciences
Inc. (GILD) and Affymetrix Inc. (AFFX).
All three carry a Zacks Rank #1.
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
ACTELION LTD (ALIOF): Get Free Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
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