Galenica snaps up Relypsa and its Veltassa med for $1.53B in march toward Vifor spinoff

AstraZeneca’s ZS-9 setback last month did Relypsa a favor: It handed Veltassa sole control of the hyperkalemia market, at least for now. That couldn’t have hurt Relypsa’s chances to sell itself at a good price--and now, the specialty pharma Galenica has snapped up the California-based drugmaker in a $1.53 billion cash deal.

Swiss-based Galenica will pay $32 per share for Relypsa, gaining a U.S. commercial organization as well as full rights to Veltassa, which treats high potassium levels in patients with chronic kidney disease. Relypsa’s operations will fold into Galenica’s Vifor Pharma unit, which is set for a spinoff sometime before 2019.

It’s an opportunity for Vifor to build up its sales in advance of that planned listing, announced in 2014. The unit brought in 967 million Swiss francs in 2015, more than one-fourth of Galenica’s overall 3.79 billion. Vifor already owns rights to the drug outside the U.S., and sells another potassium binder, Velphoro, in addition to the iron deficiency drug Ferinject, which grew sales to 250 million francs last year on expansion in the U.S.

Free Daily Newsletter

Like this story? Subscribe to FiercePharma!

Biopharma is a fast-growing world where big ideas come along daily. Our subscribers rely on FiercePharma as their must-read source for the latest news, analysis and data on drugs and the companies that make them. Sign up today to get pharma news and updates delivered to your inbox and read on the go.

Some analysts see Veltassa as a potential blockbuster, and the drug’s chances at breaking the $1 billion barrier are certainly better than they were earlier this year, when AstraZeneca’s ZS-9 was expected to hit the market hot on Relypsa’s heels. At the time, some analysts figured Veltassa would peak far lower, at $200 million in sales. 

Now that the FDA has rejected ZS-9, Veltassa has more time to grab share before facing head-to-head competition. Not necessarily scads of time--the agency’s rebuff stemmed from manufacturing problems that needed fixing, rather than data shortfalls. But extending its first-to-market advantage even by a few months gives Veltassa a chance to dig in.

Plus, Sanofi is co-marketing Veltassa, in a deal that put the French drugmaker’s experienced renal reps behind the drug, in addition to Relypsa’s own 120-rep strong salesforce.

The Relypsa buyout speaks to Vifor’s overriding goal of building up its cardio-renal business in advance of the planned spinoff. The company previously teamed up with Fresenius on Vifor Fresenius Medical Care Renal Pharma to the same end, and last year inked a deal for U.S. rights to Roche’s iron deficiency drug Mircera, commonly used by kidney patients.

Acquiring Relypsa will “enhance the commercial visibility and presence of Vifor Pharma in the key renal market in the United States, where Relypsa has already established a significant and powerful specialist sales force,” Galenica said in announcing the deal. Combining Vifor Pharma, the Fresenius venture and Relypsa puts Vifor in a position “to become a major player in the United States in its core therapy areas.”

- see the deal announcement

Related Articles:
AstraZeneca's ZS-9 pain could mean big marketing gains for Relypsa and Sanofi's rival Veltassa
Relypsa, Sanofi marketing teams revved up and waiting for FDA nod on patiromer
After ZS Pharma buyout, Relypsa slated to be next on the hit list
Buyers eye Relypsa and its hyperkalemia drug
Sanofi adds its sales heft to Relypsa's forthcoming patiromer launch
Galenica plans dealmaking flurry ahead of mooted spinout

Read more on

Suggested Articles

The second of AbbVie’s highly anticipated 2019 blockbuster candidates is here: Its crucial Humira follow-up, Rinvoq.

Bristol-Myers Squibb’s takeover of Celgene hasn’t always gone smoothly, but now a once-left-for-dead centerpiece of that deal is ready to launch.

Investors sued Novo Nordisk in Denmark, claiming it misled the public about trouble plaguing its insulin franchise—and demanding $1.75B in damages.