Kyowa Kirin to acquire Orchard Therapeutics in deal worth $477m

The deal gives Kyowa access to a therapy for early-onset metachromatic leukodystrophy

Kyowa Kirin has announced it has agreed to acquire Orchard Therapeutics in a deal worth $477.6m to develop several biopharmaceutical candidates in areas including oncology and autoimmune diseases.

As part of the definitive agreement, Japan-based biopharmaceutical company Kyowa will gain rights to Orchard’s Libmeldy (atidarsagene autotemcel) for early-onset metachromatic leukodystrophy (MLD).

As well as this, Kyowa will maximise Orchard’s innovative genetically modified haematopoietic stem cells (HSCs) gene therapy platform technology to correct the underlying cause of a genetic disease.

The acquisition will also accelerate the development of Orchard’s next-in-line MPS programmes, along with its research programmes, including severe genetic forms of Crohn’s disease and frontotemporal dementia (FTD).

Under the terms of the agreement, Kyowa will acquire Orchard for $16 per American Depositary Share (ADS) in cash, approximately worth $387.4m, and Orchard shareholders will hold contingent value rights (CVR) of $1 per ADS.

“This is an exciting opportunity designed to accelerate the realisation of our shared vision of ending the devastation caused by severe genetic diseases and deliver life-changing value in medical care,” said Bobby Gaspar, co-founder and chief executive officer of Orchard Therapeutics.

“With this transaction, we anticipate being able to use a new modality that can have a profound impact on patients’ lives… for patients living with rare and life-threatening inherited diseases,” said Takeyoshi Yamashita, chief medical officer and senior managing executive officer of Kyowa Kirin.

Libmeldy has already received approval from the European Commission and the UK Medicines and Healthcare products Regulatory Agency to treat late infantile and early juvenile MLD patients.

The therapy is also currently under priority review by the US Food and Drug Administration, with a Prescription Drug User Fee Act goal date of 18 March 2024.