Zevra aims to advance in the development and commercialisation of treatments for rare diseases and support patient communities with limited or no existing therapeutic options
Zevra acquires Acer Therapeutics. (Credit: CDC on Unsplash)
US-based Zevra Therapeutics has completed the acquisition of pharmaceutical company Acer Therapeutics to become a rare disease company.
Zevra aims to advance in the development and commercialisation of treatments for rare diseases.
The company also aims to support patient communities with limited or no existing therapeutic options.
As previously disclosed in August this year, all outstanding Acer shares were exchanged for 2.96 million shares of Zevra stock and contingent value rights (CVRs) as part of a capital-efficient transaction.
The CVRs denote the right to receive up to $76m, net of any amount owed to Acer’s former warrant-holder SWK Funding, following the fulfilment of specific regulatory and net sales milestones.
In addition, Zevra paid cash, Zevra shares, and notes valued at $28.5m for Acer’s senior secured debt just before the merger deal was signed and made public.
Zevra president and CEO Neil McFarlane said: “Today’s acquisition marks an exciting milestone for Zevra as we advance our mission to deliver therapies to the rare disease community.
“With our combined resources, expanded portfolio, and expert capabilities, we have the opportunity to make a tremendous impact on the lives of people with serious rare diseases.
“We are excited about the opportunities ahead for patients and remain focused on executing our strategic priorities to create long-term shareholder value.”
The acquisition also adds Olpruva, approved for the treatment of specific urea cycle disorders (UCDs), and EDSIVO, which is presently in Phase 3 for the treatment of vascular Ehlers-Danlos syndrome (vEDS) to the rare disease firm’s clinical portfolio.
With the inclusion of key Acer employees and pre-existing commercial systems, the acquisition strengthens Zevra’s development and commercial capabilities and provides complementary assets.
Canaccord Genuity served as financial advisor to Zevra and Bryan Cave Leighton Paisner served as legal advisor.
Pillsbury Winthrop Shaw Pittman served as legal advisor to Acer, and William Blair & Company served as financial advisor.