French biotechnology firm Ipsen has inked an agreement to purchase German radiopharmaceutical developer OctreoPharm Sciences for a total price of up to 50 million euros ($55.7 million U.S.).
Ipsen said the deal will expand its presence in the field of neuroendocrine tumors. OctreoPharm is developing radiopharmaceuticals for the diagnosis and treatment of neuroendocrine tumors based on a somatostatin receptor antagonist peptide. Its lutetium-177-labeled therapeutic compound is currently in preclinical development for use as peptide receptor radionuclide therapy, according to Ipsen. The diagnostic compound, currently in clinical development, is a tracer for identifying neuroendocrine tumors on PET and PET/CT studies.
Under the terms of the deal, OctreoPharm's shareholders will receive an upfront payment as well as downstream payments contingent upon clinical and regulatory milestones. The deal is expected to be finalized once closing conditions have been completed, according to the firm. Ipsen said it plans to maintain OctreoPharm's location and staff.
Ipsen noted that the acquisition also includes an agreement with OctreoPharm shareholder and isotope technology developer Eckert & Ziegler to provide contract manufacturing services for radiolabeling of the therapeutic compound.
