Rare Daily Staff
Amryt said it has signed a definitive agreement to acquire Chiasma in an all-stock combination to create a combined company in rare and orphan diseases with three commercial products targeting rare and orphan diseases.
Under the terms of the transaction, which has been approved by the board of both companies, each share of Chiasma common stock issued and outstanding prior to the consummation of the transaction will be exchanged for 0.396 Amryt American Depositary Shares (ADSs), each representing five Amryt ordinary shares. As of the close of trading on May 4, 2021 Amryt’s ordinary shares on AIM were $2.78 (£2.00) per share and Amryt’s ADSs on Nasdaq were $12.95 (£9.31) per ADS.
Amryt shareholders will own approximately 60 percent and Chiasma shareholders approximately 40 percent of the combined entity with voting agreements received from lead shareholders of both businesses: Athyrium Capital Management, Highbridge Capital Management, and MPM Capital.
Chiasma’s oral somatostatin analog Mycapssa, for the long-term maintenance treatment in patients with the growth hormone disorder acromegaly, was approved almost a year ago and priced at more than $5,000 for a month’s supply. Although the global market for the drug is estimated at $800 million, the company recorded just $2 million in sales so far.
“The merger with Amryt allows the combined company to significantly leverage the operational efficiencies in successfully commercializing Mycapssa globally and expand the potential benefits of Mycapssa to other patients with unmet needs,” said Raj Kannan, CEO of Chiasma.
Amryt says it has the infrastructure, expertise, and the financial flexibility to realize the full potential of Mycappsa globally and further develop life-cycle management opportunities to expand its benefits to other patient populations including those with neuroendocrine tumors (NET), and a potential $1.9 billion market. The transaction is expected to accelerate and diversify Amryt’s growing revenues and Amryt expects to deliver estimated annual cost synergies of approximately $50 million.
“We see significant revenue growth opportunities for Mycapssa in acromegaly and are also very excited to further develop the potential for Mycapssa in patients with carcinoid symptoms stemming from NET where we believe the commercial opportunity is significant, said Joe Wiley, CEO of Amryt.
The company says the deal solidifies its position as a leader in treating rare and orphan conditions with three approved commercial products and a lead candidate in late-stage development. Amryt’s marketed products include Juxtapid, approved as an adjunct to a low-fat diet and other lipid-lowering medicinal products for adults with the rare cholesterol disorder, homozygous familial hypercholesterolaemia; and Myalept, approved as an adjunct to diet as replacement therapy for complications of leptin deficiency in patients with congenital or acquired generalized lipodystrophy (GL); both netted through its acquisition of Aegerion in 2020.
Amryt’s lead pipeline product Filsuvez is under regulatory review in the United States and European Union as a treatment for the rare skin disorder epidermolysis bullosa.
Photo: Joe Wiley, CEO of Amryt