Zevra inks deal worth up to $91M to strengthen rare disease portfolio
Zevra Therapeutics and Acer Therapeutics have announced a strategic merger aimed at bolstering Zevra's presence in the rare disease market. The agreement, valued at up to $91 million, involves Zevra acquiring Acer through an issuance of approximately 2.96 million shares of Zevra common stock. Acer Therapeutics has seen its stock prices go up over 125 percent in the wake of the announcement.
Additionally, the deal includes a possibility of up to $76 million in cash payments contingent on specific milestones achieved by two Acer products: OLPRUVA, which recently gained U.S. Food and Drug Administration approval to treat urea cycle disorders (UCDs), and EDSIVO, Acer's drug for vascular Ehlers-Danlos syndrome that is still being evaluated in a clinical trial. Zevra is taking over the commercialization of both therapies.
“We believe that Acer’s portfolio of rare disease programs, including the recent U.S. commercial approval of OLPRUVA for UCDs, is a perfect strategic fit for Zevra and creates significant opportunity for us to positively impact patient lives while creating shareholder value,” Joshua Schafer, chief commercialization officer and executive vice president of business development at Zevra, said in a statement. “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.”
“Following years of product development and commitment to rare disease communities, culminating in the FDA approval of OLPRUVA, we are pleased to see our assets, pipeline and team positioned to unite under the Zevra umbrella,” added Chris Schelling, CEO and founder of Acer. “We look forward to working with the Zevra team to ensure a smooth transition as we work together on behalf of patients”
The transaction is expected to close in the fourth quarter of 2023, pending approval by Acer's shareholders.
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