Incyte Corporation announced on Tuesday that they're planning to acquire Escient Pharmaceuticals along with its assets for 750 million dollars plus the remaining net cash at the conclusion of the deal, subject to customary adjustments. The deal will be implemented promptly after all conditions such as clearance under the Hart-Scott-Rodino Act are fulfilled or waived. Estimations suggest this process should be completed by the third quarter of 2024.
The acquisition notably includes two first-in-class products, EP262, a highly selective small molecule antagonist of the MRGPRX2 receptor, and EP547, an oral antagonist of the MRGPRX4 receptor. EP262 is ingested once daily.
Incyte's Chief Executive Officer, Herve Hoppenot, commented on the acquisition. He said it lays the groundwork for the company to produce unique and first-in-class medicines with high prospective value. The products, EP262 and EP547, expand and complement Incyte's existing portfolio, allowing the company to apply its knowledge towards serving people with inflammatory diseases and potentially launch new products, initially from 2029.
The agreement involved several advisory and counselling roles. Centerview Partners LLC and Goldman Sachs & Co. LLC provided advisory services to Escient. Fenwick & West LLP acted as Escient’s legal consultant, while Covington & Burling LLP provided legal counsel for Incyte.
As the news broke in pre-market activity on the Nasdaq, Incyte's shares saw an approximate 1.3% increase, trading around $52.60.
