BioMarin agrees to buy Dutch biotech company for up to $840 million

By Laith Agha

lagha@marinij.com @LaithAgha on Twitter

BioMarin agreed this week to buy Dutch biotech company Prosensa Holding N.V., a move intended to expand the Marin-based company's repertoire of drugs that fight rare diseases.

Prosensa specializes in drugs for treating muscular dystrophy, a disease that weakens the musculoskeletal system. BioMarin's most immediate interest in the company focuses on the drug drisapersen, which treats Duchenne, a specific form of muscular dystrophy that primarily affects boys. It is under review by the U.S. Food and Drug Administration as is being fast-tracked for approval, BioMarin officials said.

"The acquisition of Prosensa fits really well with our mission in delivering treatment in rare diseases," said BioMarin spokeswoman Debra Charlesworth. "This has the potential to be one of our largest commercial products."

With the deal still pending, the offer is for $680 million up front, a price based on BioMarin paying $17.75 per share for Prosensa's stock. The deal also includes two additional $80 million payments, one of which will be paid if drisapersen is approved in the United States by May 15, 2016, and the other if the drug is approved in Europe by Feb. 15, 2017.

BioMarin, which projects up to $710 million in revenues this year, would draw from its $1 billion reserve fund to pay for the acquisition. The company is not profitable at this time, Charlesworth said, since most of its net gains are reinvested into research and development.

Charlesworth said it is early to speculate on how many jobs the acquisition could bring to Marin. But if the drug is approved in the U.S., BioMarin would at least add positions to market the drug, which would continue to be produced in the Netherlands.

BioMarin, which employs about 1,000 people in Marin County, is headquartered in San Rafael, and has manufacturing and laboratory facilities in Novato. It produces drugs for rare diseases that, at any given time, have only a few thousand diagnoses around the world. Combined, BioMarin's five drugs on the market can treat less than 20,000 cases around the world not including China and India, where BioMarin doesn't market its products.

Beyond drisapersen, Prosensa has several other drugs in development for treating other forms of muscular dystrophy that affect another 35,000 boys in BioMarin's marketing territories. It also is developing a drug for treating Huntington's disease, a genetic disorder that shows up later in life and affects muscular coordination.

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BioMarin agrees to buy Dutch biotech company for up to $840 million