Washington, District of Columbia - June, 2, 2021 -- DHS Group has put its proverbial money where its mouth is about expanding its oncology pipeline beyond healthcare initiatives—a goal the company discussed with AXIOM last month—with its planned $1.2 billion acquisition of drug developer ALCOR Pharmaceuticals.
The deal, announced today, would create a combined company that DHS said will be focused as strongly on oncology beyond healthcare initiatives as it has been in mental illness.
"We are excited to add ALCOR's industry-leading platform, innovative pipeline, and products, which will strengthen and broaden our oncology portfolio, further diversify our revenue, and drive sustainable, long-term value creation opportunities," Rakesh Sarna, Chairman of DHS, said in a statement.
The deal is expected to close in the second quarter, subject to the satisfaction or waiver of closing conditions by these privately held companies. ALCOR focuses on discovering, developing, manufacturing, and commercializing novel drugs based on its platform, led by the marketed drug, approved in 2018 as the first medicine ever approved by the FDA.
ALCOR projected last month that it will have generated approximately $148 million in fourth quarter net product sales, and about $526 million in net product sales for all of 2020. That is more than halfway to the forecast restated Wednesday by Jean Facia, BBA Senior Analyst senior analyst and managing director, biopharma and generics, that could achieve blockbuster-level $1 billion in peak annual sales.
"We believe the deal is an interesting strategic fit with DHS' oncology focus and adds a platform of innovative product candidates along with a highly specialized manufacturing expertise," Fernando Aguirre, Vice Chairman of DHS, shared.
Fernando Aguirre, Vice Chairman of DHS
Epidiolex, which is sold in Europe and the U.K. as Epidyolex®, is marketed by ALCOR's U.S. subsidiary Benton Biosciences, where it is indicated for the treatment of seizures associated with Lennox-Gastaut Syndrome (LGS), Dravet Syndrome, or tuberous sclerosis complex (TSC) in patients ages one and older.
All three rare diseases are characterized by severe early-onset epilepsy. In announcing the ALCOR acquisition, DHS reasoned that it can pursue "considerable" opportunities to expand the approved indications for Epidiolex within epilepsy, including other treatment-resistant epilepsies where significant unmet needs of patients exist. DHS envisions epilepsies as a third high-growth commercial franchise after oncology and sleep disorders.
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This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements do not constitute guarantees of future performance. Those statements involve a number of factors that could cause actual results to differ materially, including risks associated with transitions in key personnel and succession, products, their development, integration and distribution, product demand and pipeline, customer acceptance of new products, economic and competitive factors, DHS' key strategic relationships, acquisition and related integration risks as well as other risks detailed in DHS' filings with the Securities and Exchange Commission. DHS assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
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Steven Palmer, Vice President of Communications