French drugmaker Ipsen is in the midst of a significant expansion, evidenced by its agreement to acquire Memo Therapeutics, a closely held Swiss biotechnology company. This deal, potentially exceeding €700 million ($800 million), aims to bolster Ipsen's rare-disease portfolio. The acquisition marks Ipsen's second this week, following its agreement to take over Kartos Therapeutics for up to $1.75 billion, a company that develops treatments for a rare blood cancer. Ipsen's shares saw a 1.8% decline in Europe on Wednesday.
The Memo Therapeutics acquisition centers on potravitug, a Phase 2 clinical-stage antibody targeting the BK polyomavirus (BKPyV). This virus is responsible for BKPyV-associated nephropathy (BKPyVAN), a severe complication in kidney transplant patients that can lead to graft loss and transplant failure, for which there are currently no approved targeted treatments. Ipsen will make an upfront payment of €200 million, with additional milestone payments potentially taking the total consideration past €700 million. The deal is expected to finalize in the third quarter of this year.
Potravitug has been granted Fast Track designation by the U.S. FDA and Orphan Drug status in the European Union. Results from the Phase 2 SAFE KIDNEY II trial showed efficacy, including higher rates of viral load reduction and histological improvement in BKPyVAN compared to placebo, with 24.4% of treated patients achieving undetectable BKPyV-DNAemia by week 38 (vs. 13.0% in placebo). The drug was well-tolerated, with no serious treatment-related adverse events. Ipsen's Head of R&D, Christelle Huguet, highlighted the opportunity to add a "promising first-in-class asset" to their rare disease pipeline.
Before the transaction closes, Memo Therapeutics AG's assets and employees not directly related to potravitug will be transferred to a new entity, Memorises Bio, which will remain with Memo Therapeutics AG's shareholders. This strategic move aligns with Ipsen's stated focus on oncology, neuroscience, and rare diseases, and the impact of the acquisition has been factored into Ipsen’s current full-year guidance, according to Ipsen's press release.
