Founded in 2008, Ra Pharma is engaged in developing therapeutics for the treatment of diseases caused by uncontrolled activation of the complement system
Image: UCB agrees to acquire Ra Pharmaceuticals for $2.5bn in cash. Photo: Courtesy of UCB S.A.
Belgian biopharmaceutical company UCB has signed a merger agreement with US-based clinical-stage biopharmaceutical company Ra Pharmaceuticals to acquire the latter for approximately $2.5bn in cash.
Under the terms of the agreement, UCB will pay $48 in cash for each Ra Pharma share, to Ra Pharma shareholders at the closing of transaction.
UCB CEO Jean-Christophe Tellier said: “Ra Pharma is an excellent strategic fit addressing multiple areas of UCB’s patient value growth strategy. Upon closing, the acquisition will add to our strong internal growth opportunities – six potential product launches in the next five years, strengthening our neurology and immunology franchises with late and early-state pipeline projects.
“In addition, the combination will provide us with the opportunity to become a leader in treating people living with myasthenia gravis, an auto-antibody mediated neurological orphan disease with high unmet medical need, as well as adding a highly productive technology platform to our innovation engine.”
The combined portfolio will offer synergies in addressing rare diseases
The closing of the transaction is subject to the approval by Ra Pharma shareholders and obtaining antitrust clearance and other customary closing conditions. The Boards of Directors of both companies have unanimously approved the transaction.
Founded in 2008, Ra Pharma develops therapeutics for the treatment of diseases caused by uncontrolled activation of the complement system of the innate immune system, based on its advanced peptide chemistry platform.
UCB said that the proposed acquisition is part of its strategic growth plan, ‘Accelerate and Expand’ since January 2019, and the addition of Ra Pharma creates an opportunity to provide better treatment options for more people with myasthenia gravis.
In addition, the acquisition is expected to enable UCB to offer new treatment opportunities for several rare diseases in neurology and immunology, along with different delivery forms, including extended release and orally available products.
UCB intends to finance the acquisition through the combined existing cash resources and new bank term loans, arranged and underwritten by BNP Paribas Fortis and Bank of America Merrill Lynch.
For the transaction, Bank of America Merrill Lynch and Lazard served as financial advisors and Covington & Burling as legal advisor for UCB, while Centerview Partners served as exclusive financial advisors and Latham & Watkins as legal advisor to Ra Pharma.
Ra Pharmaceuticals president and chief executive officer Doug Treco said: “UCB shares our commitment to the rare disease patient community and our goal of developing novel, accessible, and cost-effective therapies in the areas of immunology and neurology.
“I firmly believe it is the right partner for us to advance new treatment options from our unique early and late stage pipeline to patients. Ra Pharma’s technology platform is an ideal addition to UCB’s leading innovation capabilities, and our scientists are looking forward to working with the entire team at UCB.”