BOTHELL — Seattle Genetics has reached a deal to acquire Seattle-based Cascadian Therapeutics for $614 million, or $10 per share in cash.
Cascadian Therapeutics’ most advanced program is a drug in clinical trials to treat breast cancer. The drug is called tucatinib.
Clay Siegall, CEO of Seattle Genetics, which is based in Bothell, said the acquisition gives his company a “potentially best-in-class, orally available” drug to treat the cancer. Seattle Genetics is the maker of Adcetris, an on the market drug which is used to treat Hodgkin lymphoma.
“Tucatinib would complement our existing pipeline of targeted cancer therapies, provide a third late-stage opportunity for a commercial product in solid tumors and expand our global efforts in breast cancer,” said Siegall, in a statement. “It also leverages our broad expertise and resources to advance and expand the tucatinib program for patients.”
The deal caused stock for Cascadian Therapeutics, which trades under the ticker symbol CASC, stock to jump from $5.90 on Tuesday to $10.06 a share at close on Wednesday.
Seattle Genetics, which trades under the ticker symbol SGEN, saw its stock drop $55.21 to $52.30 a share or a loss of 5.27 percent.
Cascadian Therapeutics CEO Scott D. Myers said the deal is a positive outcome for patients, his employees and Cascadian Therapeutics stockholders.
“Seattle Genetics has the development and commercial capabilities and the resources needed to more fully realize the potential of tucatinib as a new best-in-class treatment option for metastatic breast cancer, colorectal cancer and potentially for other indications,” Myer said.
For the acquisition, Seattle Genetics has secured a financing commitment in the amount of $400 million from Barclays and JPMorgan-Chase Bank. The balance of the consideration will be provided from cash on hand.
Last summer, Seattle Genetics spent $43.3 million to purchase a pharmaceutical manufacturing plant in Bothell. A year ago, Seattle Genetics terminated a $2 billion deal to purchase New Jersey-based biotech firm Immunomedics, which was developing treatments for breast, lung and bladder cancers.
Jim Davis: 425-339-3097; jdavis@heraldnet.com; @HBJnews.
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