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Orchard (ORTX) Up 97% on $478M Acquisition Deal With Kyowa Kirin
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Orchard Therapeutics plc , a rare disease gene therapy biotech, announced entering into a definitive agreement to be acquired by the Japanese pharmaceutical company, Kyowa Kirin Co., Ltd, for a consideration of $16 per American Depositary Share (ADS) in cash, which amounts to a total transaction value of approximately $387.4 million.
The total transaction value represents a premium of 144% to ORTX’s average price per ADS over the past 30 days ended Oct 4, 2023.
Per the transaction terms, Orchard’s shareholders will also receive an additional contingent value right (CVR) of $1 per ADS, upon the approval of Libmeldy (OTL-200) for the treatment of metachromatic leukodystrophy (MLD) in the United States.
Libmeldy is currently approved in the EU and U.K. to treat late infantile and early juvenile MLD patients. In the United States, Orchard has already filed for the regulatory approval of Libmeldy to treat pediatric patients with MLD and enjoys the FDA’s Priority Review status. A decision from the regulatory body is expected on Mar 18, 2024.
MLD is a rare hereditary disease of the body’s metabolic system. In its most severe manifestation, babies develop normally but start to rapidly lose the ability to walk, talk and interact in late infancy.
Including this CVR entitlement, Kyowa Kirin is liable to pay $17 per ADS to Orchard’s shareholders, bringing up the transaction value to approximately $477.6 million, subject to meeting certain conditions.
The transaction has been unanimously approved by the board of directors of both companies and is expected to close in the first quarter of 2024, subject to shareholder approval and the fulfillment of certain regulatory and customary closing conditions.
ORTX’s stock shot up 97.4% on Thursday, in response to the acquisition news. Year to date, shares of the company have skyrocketed 330% against the industry’s 17.8% fall.
Image Source: Zacks Investment Research
The successful closing of the transaction will provide Kyowa Kirin access to Orchard’s novel gene-therapy approach, whereby it uses a patient’s own genetically modified hematopoietic stem cells (HSCs) to potentially correct the underlying cause of a genetic disease using a single administration.
The transaction will add Orchard’s portfolio of commercial, clinical and pre-clinical HSC gene therapies designed to address serious diseases with significant unmet medical needs to Kyowa Kirin’s portfolio.
ORTX’s commercial portfolio includes only one marketed product, Libmeldy. The addition of Libmeldy to Kyowa Kirin’s portfolio will provide it with an incremental stream of revenues, thereby boosting the top line. Kyowa Kirin is set to accelerate the development of Orchard’s next-in-line MPS programs and its other early-stage programs.
Orchard also has two early-stage clinical-stage candidates in its pipeline, such asOTL-203 and OTL-201, which are being developed using its HSC gene therapy technology platform to treat severe pediatric neurometabolic disorders, mucopolysaccharidosis type I Hurler’s syndrome and mucopolysaccharidosis type IIIA, respectively.
Orchard Therapeutics PLC Sponsored ADR Price and Consensus
Some better-ranked stocks in the overall medical sector are Corcept Therapeutics (CORT - Free Report) , Annovis Bio (ANVS - Free Report) and Better Therapeutics (BTTX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
In the past 30 days, the Zacks Consensus Estimate for Corcept’s 2023 earnings per share has remained constant at 78 cents. During the same period, the estimate for Corcept’s 2024 earnings per share has also remained constant at 83 cents. Year to date, shares of CORT have gained 30.4%.
CORT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 6.99%.
In the past 30 days, the Zacks Consensus Estimate for Annovis’ 2023 loss per share has remained constant at $4.38. During the same period, the estimate for Annovis’ 2024 loss per share has also remained constant at $2.77. Year to date, shares of ANVS have lost 32.7%.
ANVS’ earnings beat estimates in three of the trailing four quarters and missed the mark on one occasion, delivering an average surprise of 13.40%.
In the past 30 days, the Zacks Consensus Estimate for Better Therapeutics’ 2023 loss per share has remained constant at 98 cents. During the same period, Better Therapeutics’ 2024 loss per share has also remained constant at 80 cents. Year to date, shares of BTTX have lost 70.8%.
BTTX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 24.22%.
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Orchard (ORTX) Up 97% on $478M Acquisition Deal With Kyowa Kirin
Orchard Therapeutics plc , a rare disease gene therapy biotech, announced entering into a definitive agreement to be acquired by the Japanese pharmaceutical company, Kyowa Kirin Co., Ltd, for a consideration of $16 per American Depositary Share (ADS) in cash, which amounts to a total transaction value of approximately $387.4 million.
The total transaction value represents a premium of 144% to ORTX’s average price per ADS over the past 30 days ended Oct 4, 2023.
Per the transaction terms, Orchard’s shareholders will also receive an additional contingent value right (CVR) of $1 per ADS, upon the approval of Libmeldy (OTL-200) for the treatment of metachromatic leukodystrophy (MLD) in the United States.
Libmeldy is currently approved in the EU and U.K. to treat late infantile and early juvenile MLD patients. In the United States, Orchard has already filed for the regulatory approval of Libmeldy to treat pediatric patients with MLD and enjoys the FDA’s Priority Review status. A decision from the regulatory body is expected on Mar 18, 2024.
MLD is a rare hereditary disease of the body’s metabolic system. In its most severe manifestation, babies develop normally but start to rapidly lose the ability to walk, talk and interact in late infancy.
Including this CVR entitlement, Kyowa Kirin is liable to pay $17 per ADS to Orchard’s shareholders, bringing up the transaction value to approximately $477.6 million, subject to meeting certain conditions.
The transaction has been unanimously approved by the board of directors of both companies and is expected to close in the first quarter of 2024, subject to shareholder approval and the fulfillment of certain regulatory and customary closing conditions.
ORTX’s stock shot up 97.4% on Thursday, in response to the acquisition news. Year to date, shares of the company have skyrocketed 330% against the industry’s 17.8% fall.
Image Source: Zacks Investment Research
The successful closing of the transaction will provide Kyowa Kirin access to Orchard’s novel gene-therapy approach, whereby it uses a patient’s own genetically modified hematopoietic stem cells (HSCs) to potentially correct the underlying cause of a genetic disease using a single administration.
The transaction will add Orchard’s portfolio of commercial, clinical and pre-clinical HSC gene therapies designed to address serious diseases with significant unmet medical needs to Kyowa Kirin’s portfolio.
ORTX’s commercial portfolio includes only one marketed product, Libmeldy. The addition of Libmeldy to Kyowa Kirin’s portfolio will provide it with an incremental stream of revenues, thereby boosting the top line. Kyowa Kirin is set to accelerate the development of Orchard’s next-in-line MPS programs and its other early-stage programs.
Orchard also has two early-stage clinical-stage candidates in its pipeline, such asOTL-203 and OTL-201, which are being developed using its HSC gene therapy technology platform to treat severe pediatric neurometabolic disorders, mucopolysaccharidosis type I Hurler’s syndrome and mucopolysaccharidosis type IIIA, respectively.
Orchard Therapeutics PLC Sponsored ADR Price and Consensus
Orchard Therapeutics PLC Sponsored ADR price-consensus-chart | Orchard Therapeutics PLC Sponsored ADR Quote
Zacks Rank and Stocks to Consider
Orchard currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall medical sector are Corcept Therapeutics (CORT - Free Report) , Annovis Bio (ANVS - Free Report) and Better Therapeutics (BTTX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, the Zacks Consensus Estimate for Corcept’s 2023 earnings per share has remained constant at 78 cents. During the same period, the estimate for Corcept’s 2024 earnings per share has also remained constant at 83 cents. Year to date, shares of CORT have gained 30.4%.
CORT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 6.99%.
In the past 30 days, the Zacks Consensus Estimate for Annovis’ 2023 loss per share has remained constant at $4.38. During the same period, the estimate for Annovis’ 2024 loss per share has also remained constant at $2.77. Year to date, shares of ANVS have lost 32.7%.
ANVS’ earnings beat estimates in three of the trailing four quarters and missed the mark on one occasion, delivering an average surprise of 13.40%.
In the past 30 days, the Zacks Consensus Estimate for Better Therapeutics’ 2023 loss per share has remained constant at 98 cents. During the same period, Better Therapeutics’ 2024 loss per share has also remained constant at 80 cents. Year to date, shares of BTTX have lost 70.8%.
BTTX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 24.22%.