Incyte Corporation (NASDAQ:INCY) said Monday it has agreed to acquire Vega Therapeutics, a wholly owned subsidiary of Star Therapeutics, in a deal valued at $1.25 billion upfront.
The transaction will add late-stage candidate VGA039 to Incyte’s hematology portfolio and could reach a total value of $2 billion if certain sales milestones are achieved.
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Deal Brings Late-Stage Von Willebrand Disease Therapy To Incyte
Under the terms of the agreement, Star Therapeutics could receive up to $750 million in additional milestone payments tied to future sales performance.
The centerpiece of the deal is VGA039, a novel monoclonal antibody designed to modulate Protein S and improve hemostasis, potentially helping the body better control bleeding in a range of bleeding disorders.
VGA039 is currently in Phase 3 pivotal development for patients with von Willebrand disease (VWD), the most common inherited bleeding disorder.
The therapy has the potential to become the first subcutaneous prophylactic treatment for VWD patients, offering a more convenient dosing option than existing therapies that often require frequent intravenous infusions.
Incyte Highlights Growth Potential
Bill Meury, CEO of Incyte, said VGA039 aligns with the company’s strategy of building a long-term growth business.
Meury described the asset as a first-in-class Phase 3 program with encouraging early data, a manageable development pathway, and the potential to become a meaningful growth contributor within Incyte’s hematology franchise.
According to the company, approximately 135,000 people in the U.S. have been diagnosed with VWD.
The disorder is characterized by excessive bleeding that can vary in severity and frequency and may significantly affect quality of life.
Regulatory Support and Ongoing Phase 3 Study
VGA039 has received Breakthrough Therapy, Fast Track, orphan drug, and rare pediatric disease designations from the U.S. Food and Drug Administration.
The candidate has advanced into the Phase 3 VIVID-6 study, a global single-arm crossover trial evaluating the safety and efficacy of subcutaneous VGA039 as prophylactic treatment for bleeding in patients across all forms.
Analyst Highlights Strategic Fit
William Blair wrote, “Overall, we believe the deal for VGA039 fits well into Incyte’s current hematology franchise and capabilities, and offers a relatively de-risked Phase 3 asset with blockbuster commercial potential in the 2030s.”
Analyst Matt Phipps on Monday wrote that even with conservative assumptions around pricing and market penetration, VGA039 has a clear path to a more than $1 billion market opportunity.
INCY Stock Price Activity: Incyte shares were up 3.01% at $103.67 at the time of publication on Tuesday, according to Benzinga Pro data.
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