DCPH - ONO to buy Deciphera Pharmaceuticals at a huge premium

2024-04-29 11:19:42 ET

Deciphera Pharmaceuticals Inc (NASDAQ: DCPH) is up a whopping 75% today after ONO Pharmaceutical (TYO: 4528) announced plans of buying it for $2.4 billion.

Deciphera Pharmaceuticals stock valued at $25.60

The cash offer values each share of Deciphera Pharmaceuticals at $25.60. Gyo Sagara – the chief executive of ONO Pharmaceutical said in a press release today:

We expect this acquisition of Deciphera will not only expand our target oncology portfolio, but also accelerate ONO’s business development in the United States and Europe.

Note that that ended last year with some $163 million in revenue will be a standalone business of ONO once the transaction is complete.

Wall Street currently has a consensus “overweight” rating on Deciphera Pharmaceuticals stock that’s now up roughly 90% versus its year-to-date low.

ONO-Deciphera deal to close in Q3 of 2024

ONO expects the acquisition to close in the third quarter of this year provided that it satisfies customary closing conditions including regulatory approval.

CEO Gyo Sagara is convinced that teaming up with Deciphera Pharmaceuticals will help drive growth and “strengthen kinase drug discovery research” as well.

The board of Deciphera has unanimously approved the ONO proposal that delivers “immediate, compelling value for our shareholders”.

The biopharmaceutical company based out of Waltham, Massachusetts will no longer host a quarterly earnings call that was originally planned for April 30th. Deciphera Pharmaceutical stock does not currently pay a dividend.

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