Cascadian Therapeutics Inc (NYSE: CASC) shares leaped in price Wednesday after the company agreed to be acquired by Seattle Genetics, Inc. (NASDAQ: SGEN) for $10 per share in cash.
Under the terms of the agreement, Seattle Genetics will pay $10.00 per share in cash, or approximately $614 million. The transaction was unanimously approved by the Boards of Directors of both companies.
Cascadian Therapeutics’ most advanced program is tucatinib, an investigational oral, small molecule tyrosine kinase inhibitor (TKI) that is highly selective for HER2, a growth factor receptor that is overexpressed in multiple cancers, including breast, colorectal, ovarian and gastric.
Tucatinib is currently being evaluated in a randomized global pivotal trial called HER2CLIMB for patients with HER2-positive (HER2+) metastatic breast cancer, including patients with or without brain metastases.
Cascadian CEO Scott Myers expressed the following, “This agreement represents a very positive outcome for patients with HER2-expressing cancers, our employees and for our stockholders.
"Seattle Genetics has the development and commercial capabilities and the resources needed to more fully realize the potential of tucatinib as a new best-in-class treatment option for metastatic breast cancer, colorectal cancer and potentially for other indications."
Said SGEN CEO Clay Siegall, "Tucatinib would complement our existing pipeline of targeted cancer therapies, provide a third late-stage opportunity for a commercial product in solid tumors and expand our global efforts in breast cancer. It also leverages our broad expertise and resources to advance and expand the tucatinib program for patients."
Cascadian shares popped $4.09, or 69.3%, to $9.99, while those for Seattle Genetics slumbered $1.70, or 3.1%, to $53.51.
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