Menarini Group, an Italian pharmaceutical and diagnostics company, announced that it would acquire Stemline Therapeutics and its product Elzonris (tagraxofusp), a CD123-directed cytotoxin.
The treatment is used to treat blastic plasmacytoid dendritic cell neoplasm, which is a rare form of tumor. According to research, those diagnosed with the condition often die within one year.
Elzonris was approved by the US Food and Drug Administration (FDA) at the end of 2018 and the treatment is currently awaiting a decision in Europe.
Menarini will pay $667m (€617m) in cash to gain access to the therapy.
In fourth quarter financials for 2019, Stemline revealed that the treatment had seen net revenues of $43.2m, with $16.5m of this sum coming in the last quarter of the year.
Menarini stated that it will work with the acquired company to develop further indications for Elzonris, with the treatment also being explored to treat various forms of leukemia and myelofibrosis.
Stemline also two additional drug candidates, SL-702, an immunotherapy being explored for adult glioblastoma multiforme, and SL-801, a small molecule reversible inhibitor of exportin-1 for advanced solid tumors.
In addition, Elcin Barker Ergun, CEO of Menarini Group, outlined, “Stemline is an excellent fit for Menarini, enabling us to expand our presence in the US with an established biopharmaceutical company focused on developing oncology therapeutics.”
Stemline is based in New York City, US, but does not possess its own manufacturing capabilities, instead working with a contract manufacturer to produce its therapies.
Menarini noted that it expects to take the company’s product global, once it has received regulatory approval. The group has locations in Italy, Germany, Spain, Turkey, Guatemala and Singapore.
The deal is expected to close in the second quarter of 2020.