Clay Siegall is the CEO of Seattle Genetics. (Dan Bates / Herald file)

Clay Siegall is the CEO of Seattle Genetics. (Dan Bates / Herald file)

Bothell’s Seattle Genetics to acquire Cascadian Therapeutics for $614M

Deal would be merger between two Puget Sound area biotech companies developing cancer treatments.

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.

Talk to us

More in Herald Business Journal

The ‘incredibly challenging’ ventilator effort by Ventec, GM

The Bothell company and General Motors wend their way through logistical and political minefields.

Most building sites have shut down, but there are exceptions

The state Senate Republican Caucus has asked Gov. Jay Inslee to lift the ban on residential work.

During this outbreak, let’s be warriors

Amid the coronavirus pandemic, it’s time for a renewed focus on making a difference.

Snohomish County manufacturers sew 27,000 masks for nurses

Two Mukilteo businesses, and others around the county, have shifted their focus to fight COVID-19.

Trump uses wartime act but GM, Ventec are already moving fast

The carmaker is working with the Bothell company to produce up to 10,000 ventilators per month.

Comments welcome on the proposed Lake Stevens Costco

The company’s permit to fill wetlands is under review. Public comment is open until April 12.

Trump stops deal for Bothell’s Ventec to produce ventilators

The project would have had the company producing more than 1,000 ventilators a month.

As Boeing shuts down, an employee’s family is left to grieve

To his family, Elton Washington is much more than a statistic in the growing COVID-19 pandemic.

Paine Field passenger volume plummets; flight changes likely

Despite a 68% drop, the passenger terminal’s owner expects to weather the coronavirus crisis.

Most Read