Medivation (MDVN) to Acquire Rights to Cancer Drug from BioMarin Pharmaceuticals
Shares of Medivation Inc. (MDVN) were trading off -3.43 or -3.75 percent to $88.00 per share in Monday's premarket after the company announced early this morning it would be acquiring worldwide rights to talazoparib, a potential cancer treatment from BioMarin Pharmaceutical (BMRN). Medivation stock closed at $91.43, down -0.82 or -0.89 percent in Friday's regular trading session.
San Francisco, California based Medivation was founded in 2004 from the acquisition of Medivation Neurology Inc. The biopharmaceutical company specializes in developing new therapies to treat serious illnesses which have limited treatment options.
San Rafael, California based BioMarin Pharmaceuticals Inc. specializes in developing and commercializing biopharmaceutical treatments for serious illnesses and medical conditions using enzyme replacement therapies. The company has offices and facilities in Asia, Europe and North and South America.
The asset purchase agreement announced earlier this morning will have Medivation acquire all worldwide rights to talazoparib, formerly referred to as BMN673, from BioMarin Pharmaceuticals. Talazoparib is a highly potent, orally available poly ADP ribose polymerase or PARP inhibitor that is currently in a Phase 3study in the treatment of patients with germline BRCA1 or BRCA2 mutations in advanced or metastatic breast cancer.
David Hung, M.D., President and Chief Executive Officer of Medivation said in the company's press release that, "Acquiring all worldwide rights to talazoparib provides Medivation with a transformational opportunity to diversify and expand our proprietary portfolio and global oncology franchise." And that, "Talazoparib's potential to act alone or augment the effects of a wide array of tumor DNA-damaging oncology therapies and its high potency and level of activity in various cancers make talazoparib a great strategic fit for Medivation's oncology portfolio, building on existing strengths as well as potentially allowing Medivation to expand into new oncology indications."
Under the terms of the deal, Medivation will be responsible for all phases of research and development, as well as global commercialization and regulatory activities related to the drug. Medivation will pay BioMarin $410 million upfront and up to $160 million more upon the completion of regulatory and sales based milestones with single mid digit royalties for the drug. After the deal closes, which is expected to be before the end of this year, Medivation will assume all financial obligations associated with developing and commercializing talazoparib.
Hank Fuchs, M.D., BioMarin's Chief Medical Officer noted that, "Medivation's expertise and track record in oncology clinical development and commercialization has been well demonstrated by the Company's success to date. Placing talazoparib in their capable hands allows us to optimize our portfolio and focus our resources on established areas of expertiseÂ ÃƒÂƒÃ‚Â‚ÃƒÂ‚Ã‚Â¢ÃƒÂƒÃ‚Â‚ÃƒÂ‚Ã‚Â¢ÃƒÂƒÃ‚Â‚ÃƒÂ‚Ã‚Â¬" developing novel products to treat rare and ultra-rare genetic diseases."
Medivation stock is already down almost four percent in this morning's premarket, in part due to the general market which is expected to open sharply lower this morning. World stock markets are reacting to an eight percent decline in the Chinese stock market.
Other News About MDVN
Medivation Tops Q2 Earnings & Ups View, Xtandi Impresses - Analyst Blog
Company reported earnings of $0.47 in the quarter, beating estimates by 9 cents.
Why Medivation is a Stunning Biotech Opportunity
Capital Market Laboratories favorable analysis of the company.
Other Stocks in the News
Netflix Considering Content Partnership With SoftBank in Japan
Companies are considering a content partnership with video streaming service set to start in Japan September 2nd.
Southern Co. agrees to buy AGL Resources in $12 billion deal
AGL Resources stock is up over nine percent on the news in this morning's premarket.