Novo Nordisk Seals the Deal On A $1.1 Billion Acquisition of Forma Therapeutics

On September 1, Novo Nordisk announced that they entered a definitive agreement to acquire Forma Therapeutics. With each share of the company priced at $20, the acquisition will cost Novo a total of $1.1 billion. The acquisition of Forma’s sickle cell disease (SCD) therapeutics portfolio aligns with Novo’s strategy to increase its presence in those fields. 

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Forma Therapeutics’ Eye-Catching Portfolio

Based in Watertown, Massachusetts, Forma Therapeutics is a clinical-stage biopharmaceutical company focused on the research, development, and commercialization of novel therapeutics for hematologic diseases and cancers.

A good example of their portfolio of therapies is etavopivat. Currently, under evaluation in a phase ⅔ clinical trial, etavopivat is a pyruvate kinase-R (PKR) activator that can potentially increase the amount of oxygen a patient with SCD can carry, granting the patient better red blood health. A similar treatment to etavopivat is Global Blood Therapeutics’ (GBT) Oxbryta. However, mechanisms of action for the two treatments differ.

Due to etavopivat and the rest of Forma’s portfolio, Novo sought to acquire the company, similar to how Pfizer acquired GBT for their SCD therapies. 

The Particulars of the $1.1 Billion Acquisition

Under the terms of the agreement, Novo will initiate a tender offer of $20 per outstanding share of Forma. In total, this amounts to around $1.1 billion. Forma’s board of directors already unanimously approved the transaction. 

On the acquisition, Frank D. Lee, President and Chief Executive Officer of Forma, said, “Today’s announcement is an exciting milestone that accelerates Forma’s purpose to transform the lives of patients with sickle cell disease and other serious haematological diseases. We look forward to working together with Novo Nordisk to serve as a trusted partner to our communities and to advance innovation, access and health equity for patients.”

Subject to certain conditions, Novo Nordisk’s acquisition subsidiary will merge into Forma Therapeutics upon the offer’s successful completion. Any shares not included in the proposal will receive the same USD price. Novo and Forma expect the $1.1 billion acquisition to close in the fourth quarter of 2022. 

Author

Max Heirich