Menarini nabs hematologic malignancy drug along with buy of Stemline

Privately-held pharma and diagnostics firm Menarini Group has announced a definitive agreement to acquire USA-based Stemline Therapeutics (Nasdaq: STML) in a transaction valued up to $677 million and the news sending the latter’s shares into stratospheric territory, with a 153% rise of $12.03 by close of trading on Monday.

Under the terms of the deal, Stemline shareholders will be offered a total potential consideration of $12.50 per share, consisting of an upfront payment of $11.50 in cash and one non-tradeable Contingent Value Right (CVR) that will entitle each holder to an additional $1.00 in cash per share upon completion of the first sale of Elzonris (tagraxofusp-erzs; SL-401) in any top five European Union (EU5) country after European Commission approval. Assuming shareholder approval, the deal is expected to close in the second quarter.

Although Menarini has not been averse to entering various licensing deals to expand its portfolio, this is the first out-right company acquisitions since it bought Silicon Biosystems in 2013.