AZ confirms interest in Acerta takeover

Responding to media speculation, AstraZeneca plc (AZN, AZN.L) confirmed Monday that it is exploring potential strategic options with Acerta Pharma BV.

Based in the state of California as well as the Netherlands, Acerta is developing new drugs to treat different kinds of autoimmune diseases and cancer two of the biggest markets in the industry. AstraZeneca cautioned that there could be “no certainty that any transaction will ultimately be entered into”, and added that it would make a further announcement when appropriate. Back in March AbbVie paid $21 billion to buy Pharmacyclics and get its hands on a major share of the Imbruvica revenue. Last week it reported positive results in leukemia.

Acerta does not yet have a partner to help develop its leading drug, although it has agreed to test acalabrutinib in combination with Merck’s Keytruda. In a study of 61 patients with CLL, the response rate among acalabrutinib-treated patients was a promising 95 percent.

The companies plan to announce the acquisition this month, sources told the Wall Street Journal.

After it spurned a takeover bid for $120 billion from USA drug maker Pfizer in 2014, Pascal Soriot the CEO at AstraZeneca said he was considering small as well as midsize deals to increase its pipeline of products.

Reuters meanwhile quoted Bernstein analyst Tim Anderson as commenting that it was not surprising that Acerta was an acquisition candidate, given pharma groups’ current heated interest in oncology.

AstraZeneca hopes to launch six new cancer meds in the market by 2020, and the Acerta deal can introduce a new, unfamiliar area of blood cancers to the British drug-maker. The NYSE ARCA Pharmaceutical Index (DRG) lost less than 1% during the same time frame.