Replies to post #228390 on Biotech Values

[DewDiligence]

List price of EPZM’s Tazverik is $186K per year ($15,500/month; $510/day), according to the company’s CC today. Of course, many patients with epithelioid sarcoma won’t survive a full year on treatment.

h/t @NedPagliarulo.

[DewDiligence]

(EPZM)—Dana-Farber blog gives historical context for FDA approval of Tazverik:

https://blog.dana-farber.org/insight/2020/01/approval-of-first-epigenetic-drug-for-a-solid-tumor-is-milestone/

[DewDiligence]

IPN.PA acquires EPZM for $1.45/sh cash_plus_CVR—a 53% premium to Friday’s close (excluding the value of the CVR):

https://finance.yahoo.com/news/ipsen-acquire-epizyme-expanding-portfolio-050100393.html

Under the terms of the agreement, Ipsen…will…acquire all outstanding shares of Epizyme at a price of $1.45 per share in cash at the closing of the transaction, for an initial estimated aggregate consideration of $247 million plus one contingent value right (CVR) per share.

Each CVR will entitle its holder to deferred cash payments of $0.30 per CVR payable upon the first achievement of $250 million in aggregate net sales of Tazverik (excluding sales in Japan and Greater China) in any period of four consecutive quarters, by 31 December 2026 and $0.70 per CVR payable upon receipt of U.S. regulatory approval necessary for the commercial marketing and sale of the combination of Tazverik and R² (rituximab and lenalidomide) in second-line follicular lymphoma by 1 January 2028.

Ipsen seeks to expand Tazverik's label from a rare indication (epithelioid sarcoma) to the much more prevalent follicular lymphoma.

This deal could be described as a takeunder insofar as the buyout price is a 90% discount to EPZM’s IPO in 2013 (#msg-88497724).