Roche to Acquire Spark Therapeutics for $4.3B

Roche to Acquire Spark Therapeutics for $4.3B

Shots:

  • Roche acquires Spark Therapeutics, in an all-stock transaction for $114.50 /share in cash, making the total deal value $4.3B. Spark to receive a premium of 122% based on its last day closing share price value i.e., 22Feb’19
  • The focus of the acquisition is to expand Roche’s footprints in genetic disorders incl. blindness, hemophilia, lysosomal storage disorders, and neurodegenerative diseases
  • Spark Therapeutics’ portfolio includes SPK-8011 & SPK-8016 for hemophilia A, SPK-9001 for haemophilia B, SPK-3006 for Pompe disease, SPK-1001 for CLN2 disease and Luxturna (voretigene neparvovec–rzyl) approved for confirmed biallelic RPE65 mutation-associated retinal dystrophy. The transaction is expected to close in the Q2’19

CI Comments/ Implications:

  • Roche’s interest in acquiring Spark was fueled largely by Spark’s experimental hemophilia A gene therapy treatment, along with its already approved therapy which can be considered as a smart move to expand its presence in treating hemophilia.
  • It seems that Roche’s interest in Spark may have triggered after Novartis owned Spark’s rare disease molecule Luxturna
  • With Roche’s experience in hemophilia and neurodegenerative disease, and with spark’s luxturna success, it seems to be a good fit to the strategy of Roche for increasing its portfolio

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