Headquartered in New York City, small cap biotechnology company Stemline Therapeutics (NASDAQ: STML) has announced that it is being acquired by Italian pharmaceutical company Menarini Group in a deal worth approximately $677 million. Under the terms of the transaction, Menarini Group will pay $12.50 per share of Stemline common stock consisting of $11.50 in cash and a $1.00 contingent value right (CVR).
The non-tradeable CVR portion will be paid to Stemline shareholders upon the successful commercial launch of Stemline’s key Elzonris product in Europe by the end of 2021. Elzonris was approved by the U.S. Food & Drug Administration (FDA) in December 2018.
Stemline is a commercial-stage biopharmaceutical company that develops novel oncology therapeutics. Its flagship Elzonris product is an FDA-approved therapy that targets blastic plasmacytoid dendritic cell neoplasm (BPDCN), a rare bone marrow and blood disease formerly called blastic NK-cell lymphoma. The treatment is used for both adults and children that are at least two years of age and is the only FDA approved BPDCN treatment in the U.S. It is also being studied in clinical trials involving the treatment of chronic myelomonocytic leukemia (CMML), myelofibrosis (MF), and acute myeloid leukemia (AML).
Menarini is a privately held global pharmaceutical company that has a direct presence in more than 70 countries and generates over $4.2 billion in annual revenue. It develops a wide range of pharmaceuticals in the cardiovascular, gastroenterology, metabolic, infectious diseases, and anti-inflammatory/analgesic therapeutic areas. The company has more recently entered the oncology space and has multiple drugs under development.
Acquisition Expands Menarini’s Oncology Portfolio
Menarini’s takeover of the U.S. company will expand its capabilities in the U.S. oncology market. It will support the continued development of Elzonris and broaden the potential reach of the therapy by leveraging its existing U.S. and European biopharmaceutical infrastructure. A marketing authorization application (MAA) regarding Elzonris is currently under review by the European Medicines Agency (EMA).
Stemline Founder and CEO Dr. Ivan Bergstein said, “Joining Menarini represents a unique opportunity for Stemline to advance the commercialization of Elzonris across the globe and to accelerate the development of our pipeline of oncology assets. We have transitioned Stemline over the last several years into an established commercial-stage operation with a novel treatment, a growing pipeline and a strong foundation.”
The Menarini-Stemline deal has been approved by each company’s Board of Directors and is expected to close in the second quarter of this year. It could enhance the commercial viability of Elzonris in Europe and emerging markets for the treatment of BPDCN as well as other potential indications in patients suffering from hard to treat diseases and cancers.
The offer price represents a 163% premium over Stemline’s closing share price on May 1st. Stemline shareholders may benefit from not only the sizeable upfront cash payment, but also the opportunity to participate in the future upside of the European launch of Elzonris. The stock was trading more than 150% higher in late afternoon trading on May 4th.
Stemline Therapeutics SEC Filings