Daiichi Sankyo To Buy Ambit Biosciences For $15 Per Share, Plus Milestones

(RTTNews) - Daiichi Sankyo Co Ltd (DSKYF.PK) Sunday agreed to buy Ambit Biosciences (AMBI) for $15 per share in cash through a tender offer followed by a merger with a subsidiary of Daiichi Sankyo, or about $315 million on a fully diluted basis.

In addition to the upfront cash payment, each Ambit Biosciences stockholder will receive one Contingent Value Right, entitling the holder to receive an additional cash payment of up to $4.50 for each share they own if certain commercialization related milestones are achieved. The total transaction is valued at up to $410 million on a fully diluted basis.

Ambit Biosciences is focused on the discovery and development of medicines to treat unmet medical needs in oncology, autoimmune and inflammatory diseases by inhibiting enzymes that are important drivers for those diseases.

The lead Ambit Biosciences drug candidate, quizartinib, is currently in phase 3 clinical trials among patients with acute myeloid leukemia, who express a genetic mutation in FLT3 and who are refractory to or relapsed after first-line treatment with or without hematopoietic stem cell transplantation consolidation.

Closing of the tender offer and merger is subject to certain conditions, including the tender of more than 50 percent of all shares of Ambit Biosciences.

Completion of the transaction is also subject to clearance under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act and customary closing conditions. The acquisition is expected to conclude promptly after receipt of HSR clearance and the close of the tender period.