By Adria Calatayud
Ipsen said it agreed to buy Kartos Therapeutics in a deal valued at up to $1.75 billion that seeks to strengthen the French drugmaker's pipeline of cancer medicines.
Through the acquisition, Ipsen adds a late-stage drug candidate for myelofibrosis--a rare blood cancer--to expand its portfolio in oncology, it said Monday. Ipsen is paying $450 million upfront to take over Kartos, with additional payments of up to $1.3 billion subject to regulatory and sales targets.
The deal builds on Ipsen's acquisition of oncology specialist ImCheck Therapeutics for up to 1 billion euros ($1.14 billion) last year after Somatuline, the company's top-selling medicine, faced generic competition in recent years.
Redwood City, Calif.-based Kartos is a privately held pharmaceutical company that was founded after the licensing from Amgen of an experimental cancer drug. It is developing the drug, navtemadlin, as an add-on therapy to the standard-of-care treatment for patients with myelofibrosis.
Navtemadlin has potential to become a new therapeutic option as early as 2028, addressing a critical care gap for patients with myelofibrosis, Ipsen Chief Executive David Loew said.
The company expects the deal to boost its core operating profit from 2029, with limited dilution to its guidance for this year. The deal is expected to be closed by the end of the third quarter, subject to customary closing conditions, it added.
In a recent interview, Ipsen's research-and-development head Christelle Huguet said the company was interested in expanding into rare hematology, as it typically prioritizes niche indications with high unmet medical needs.
Ipsen looks at dealmaking opportunities in all three therapeutic areas where it is active--oncology, neuroscience and rare diseases--and considers drugs at all stages of development, Huguet said.
Shares in Ipsen were up 1.5% in European midday trading.
Write to Adria Calatayud at [email protected]