Deciphera to be acquired by Japan's Ono in all-cash deal valued at $2.4 billion

By Ciara Linnane

Deal will expand Ono's pipeline of cancer treatments and help it expand in the U.S. and Europe

Deciphera Pharmaceuticals Inc. said Monday it has agreed to be acquired by Japan's Ono Pharmaceutical Co. Ltd in an all-cash deal valued at $2.4 billion.

Under the terms of the deal, Ono (JP:4528) will pay $25.60 per Deciphera share (DCPH) through a tender offer, after which it will merge the Waltham, Mass.-based company with a wholly owned subsidiary.

The price is equal to a 74.7% premium over Deciphera's closing share price of $14.65 on Friday, and a premium of 68.8% to its 30-trading-day volume weighted average price as of Friday.

The deal has been approved by both boards.

Deciphera specializes in kinase drug discovery, a key drug target in treating cancer. The company has won regulatory approval for a treatment for stomach cancer and has a diverse pipeline of potential treatments for other types of cancer.

"We expect that this acquisition of Deciphera will not only expand ONO's target oncology portfolio, but also accelerate ONO's business development in the United States and Europe, and strengthen kinase drug discovery research," Ono's CEO Gyo Sagara said in prepared remarks.

The deal is expected to close in the third quarter subject to U.S. antitrust clearance and the tender of the majority of Deciphera shares.

Deciphera's stock rose 72% after a halt for the news was lifted, but has fallen 9% in the year to date, while the S&P 500 SPX has gained 6.9%.

-Ciara Linnane

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04-29-24 0740ET

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