After Y-mAbs Therapeutics won its first FDA approval more than four years ago, the company has faced numerous hurdles on its quest to become an oncology powerhouse. Now, the drugmaker is moving to sell itself to fly under the wings of SERB Pharmaceuticals.
SERB and Y-mAbs on Tuesday revealed a deal in which SERB will buy Y-mAbs for $8.60 per share, a 105% premium to the oncology specialist's Monday closing price. The deal's total value is about $412 million, according to an August 5 release.
As part of the deal, SERB will pick up Danyelza, the first FDA-approved treatment for relapsed or refractory high-risk neuroblastoma.
The drug won accelerated FDA approval in November 2020 to treat pediatric patients 1 year and older and adults with relapsed or refractory high-risk neuroblastoma in the bone or bone marrow who have demonstrated a partial response, minor response or stable disease to prior therapy. It's approved in combination with granulocyte-macrophage colony-stimulating factor.
At the time of the approval, Y-mAbs was working to become "a world leader in developing better and safer antibody-based oncology products addressing unmet pediatric and adult medical needs," then-CEO Claus Moller said in a statement.
But the company has faced several hurdles in the years since, including the FDA's rejection of another one of its therapies, omburtamab, for the treatment of central nervous system/leptomeningeal metastasis from neuroblastoma. Shortly after that setback, the company laid off a third of its staff and dropped its cancer vaccine ambitions.
Y-mAbs shares traded at around $48 at the time of Danyelza's approval but have gradually sold off over the years, reaching a low of about $3 in 2023. Alongside the slide, the company has worked through several rounds of downsizing and leadership changes.
Just this year, the company revealed a reorganization and tapped a new commercial chief to help advance the Danyelza launch.
As for SERB, the global pharmaceutical company employs more than 500 people and handles the marketing of more than 70 medicines in various countries around the world. In rare diseases, the company's drugs treat patients with certain cancers, neurologic syndromes and metabolic disorders.
Together, SERB and Y-mAbs plan to continue generating data for Danyelza and work to grow the drug's reach, SERB CEO Vanessa Wolfeler said in a statement. The therapy, which competes with United Therapeutics’ Unituxin and Apeiron Biologics’ Qarziba, generated $88 million last year.
After Y-mAbs shares closed Monday at $4.19, the company's stock price jumped more than 100% early Tuesday to $8.50.