Over the course of today's current session, Deciphera Pharmaceuticals, Inc. (NASDAQ: DCPH) has seen a remarkable 72.39% increase in share price, closing at $25.25. The announcement of a proposed acquisition of Deciphera Pharmaceuticals has resulted in a notable surge in the value of DCPH shares on US stock markets.
Deciphera Pharmaceuticals (DCPH) made a formal announcement today announcing the signing of a final merger agreement with ONO Pharmaceutical Co., Ltd. (ONO). In line with the terms of this agreement, ONO will buy all outstanding shares of Deciphera common stock for $25.60 per share in cash.
The $2.4 billion total equity value of the purchase process will be reached through a tender offer, which will be followed by the merger of Deciphera Pharmaceuticals with an ONO wholly-owned subsidiary. The combined venture between ONO and Deciphera Pharmaceuticals aims to expedite their mutual goal of creating innovative drugs for worldwide patient care.
A number of potential first- or best-in-class medications, such as vimseltinib, the ULK inhibitor DCC-3116, and other cancer prospects, are part of DCPH's well-developed and diversified pipeline. With encouraging key clinical evidence, the highly selective switch-control kinase inhibitor imeltinib has established itself as a possible first-line and innovative treatment for tenosynovial giant cell tumors (TGCT) and maybe additional indications.
In accordance with the provisions of the final merger agreement, ONO will pay $25.60 per share in cash to acquire all of the existing Deciphera shares, for an estimated total equity value of $2.4 billion. The acquisition price represents a premium of 68.8% over the volume weighted average price of Deciphera Pharmaceuticals as of April 26, 2024, and a premium of 74.7% over DCPH's closing price of $14.65 on the same day.
With this purchase, ONO should be better equipped to strengthen its position in oncology, one of its main areas of focus, and to further its goals of becoming a Global Specialty Pharma company. The purchase structure calls for a tender offer, which is followed by a merger of Deciphera Pharmaceuticals with an ONO subsidiary that is completely owned.