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BioMarin Pharmaceutical is making more waves on the M&A front. The company announced Tuesday that it will acquire Alesta Therapeutics for $275 million upfront. The deal gives BioMarin access to Alesta’s oral treatment for hypophosphatasia, or HPP – a rare genetic bone disease. The drug, ALE1, is currently in early stage clinical trials, but has the potential to be the first oral treatment for HPP. BioMarin will pay up to an additional $215 million if the drug hits certain milestones.
The move further bolsters BioMarin’s unit focused on rare skeletal conditions, a portfolio anchored by its drug Voxzogo. It also marks the company’s third major deal in the rare disease space over the past year, headlined by the $4.8 billion deal to buy Amicus Therapeutics announced last December.
“This is exactly the kind of opportunity to address a significant unmet need that lets us compete in larger rare disease markets – adding an asset that has the potential to reach our largest addressable patient population. We plan to continue to seek these kinds of opportunities as we focus on clinical-stage innovation to drive durable growth for BioMarin,” BioMarin’s president and CEO, Alexander Hardy, said in a statement released yesterday.
The release also noted that more than 9,000 people in the United States have been diagnosed with HPP, though it is believed that the true number of people impacted by the disease is likely higher.
Ilan Ganot, Alesta’s CEO, said BioMarin’s ability to scale the treatment factored into his board’s decision to approve the deal. “BioMarin’s global reach, scale, and proven expertise in rare disease drug development make it an ideal partner to advance ALE1 and realize its potential as a promising treatment for patients with HPP worldwide.”
The deal is expected to close this quarter.
