HomeMost PopularInvestingOrchard Therapeutics Enters $478M Acquisition Deal with Kyowa Kirin

Orchard Therapeutics Enters $478M Acquisition Deal with Kyowa Kirin

Actionable Trade Ideas

always free

Orchard Therapeutics (ORTX), a leading rare disease gene therapy biotech company, has announced that it will be acquired by Japanese pharmaceutical company Kyowa Kirin Co., Ltd. The acquisition deal is valued at $387.4 million, or $16 per American Depositary Share (ADS) in cash, representing a 144% premium to ORTXโ€™s average price over the past 30 days.

In addition to the cash consideration, Orchard shareholders will receive a contingent value right (CVR) of $1 per ADS upon the approval of Libmeldy (OTL-200) for the treatment of metachromatic leukodystrophy (MLD) in the United States. Orchard has already filed for FDA approval and enjoys Priority Review status, with a decision expected on March 18, 2024.

Orchardโ€™s Unique Gene Therapy Approach

Orchard Therapeutics is known for its novel gene therapy approach that utilizes patientsโ€™ own genetically modified hematopoietic stem cells (HSCs) to potentially correct the underlying cause of genetic diseases. This acquisition will provide Kyowa Kirin with access to Orchardโ€™s portfolio of commercial, clinical, and pre-clinical HSC gene therapies.

Orchardโ€™s commercial portfolio includes Libmeldy, which is already approved in the EU and UK to treat late infantile and early juvenile MLD patients. The addition of Libmeldy to Kyowa Kirinโ€™s portfolio will not only bring in incremental revenues but also accelerate the development of Orchardโ€™s other programs, such as MPS programs and early-stage candidates like OTL-203 and OTL-201.

Market Response and Closing Details

Upon the announcement of the acquisition deal, Orchardโ€™s stock surged 97.4%. Year to date, the companyโ€™s shares have witnessed an impressive 330% increase, outperforming the industryโ€™s 17.8% fall.

The transaction is subject to shareholder approval and certain regulatory and customary closing conditions. It has received unanimous approval from the boards of directors of both companies. The closing is expected to take place in the first quarter of 2024.

Investment Opportunities in the Medical Sector

Investors looking for potential opportunities in the medical sector may consider stocks like Corcept Therapeutics (CORT), Annovis Bio (ANVS), and Better Therapeutics (BTTX). Corcept Therapeutics currently holds a Zacks Rank #3 (Hold), while Annovis Bio and Better Therapeutics carry a Zacks Rank #2 (Buy).

Corcept Therapeutics has shown consistent earnings per share estimates, and its stock has gained 30.4% year to date. Annovis Bio has beaten earnings estimates in three of the last four quarters, and its stock has experienced a 32.7% loss year to date. Better Therapeutics has consistently beaten earnings estimates and delivered an average surprise of 24.22% over the past four quarters, although its stock has declined by 70.8% this year.

Investors interested in these stocks should conduct further research and analysis before making any investment decisions.

Conclusion

The acquisition deal between Orchard Therapeutics and Kyowa Kirin represents a significant development in the gene therapy and pharmaceutical industries. With access to Orchardโ€™s groundbreaking gene therapy approach and portfolio, Kyowa Kirin aims to bolster its presence in the rare disease treatment market. Investors may find opportunities in related stocks like Corcept Therapeutics, Annovis Bio, and Better Therapeutics. However, it is crucial to consider individual investment goals and conduct thorough research before making any investment decisions.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.