Brussels-based UCB signed a $1.9 billion deal to buy Zogenix, a California-based biopharmaceutical company that specializes in developing treatments for rare diseases, including epilepsy.
Under the agreement, UCB will purchase all outstanding shares of Zogenix. As part of the deal, a contingent value right for a potential additional cash payment per share will be paid if Fintepla, a revolutionary treatment for seizures, is granted EU approval as an orphan medicine for the treatment of Lennox-Gastaut syndrome (LGS) by the end of 2023. The U.S. FDA approved Fintepla for the treatment of seizures associated with Dravet syndrome back in 2020 and has granted priority review to Zogenix’s supplemental NDA to expand Fintepla's approval as a treatment for LGS.
UCB has been beefing up its portfolio of rare disease drugs and treatments. In 2021, the company signed a $1.5 billion deal with Novartis to co-develop a drug for Parkinson’s disease.
The latest acquisition will allow UCB to expand globally and to continue its entrance into the epilepsy market. Zogenix’s treatments and experience in developing therapies for rare and orphan diseases will contribute to UCB’s revenue growth in the future.
The deal is expected to close by the end of June.