Daiichi Sankyo broadens cancer pipeline buying Plexxikon for $805 million

Japanese drug major Daiichi Sankyo (TYO: 4568) says that it has concluded an agreement to acquire Plexxikon, a privately-held pharmaceutical company based in Berkeley, California with a late-stage oncology product, PLX4032, as well as a promising pipeline and technology platform.

The purchase price for Plexxikon is approximately $805 million on a debt-free basis and will be internally funded. Additional potential payments totaling around $130 million will be made based on near-term launch milestones with respect to PLX4032 in malignant melanoma. Closure of the transaction is subject to clearance under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act and customary closing conditions. The acquisition is expected to conclude promptly after receipt of HSR clearance, said Daiichi Sankyo.

PLX4032 licensed to Roche