Forma Therapeutics shares jump 50%; here is why

Forma Therapeutics Holdings Inc (NASDAQ: FMTX) shares are up 50% after announcing a definitive agreement with Novo Nordisk. According to the agreement terms, Novo Nordisk will purchase the clinical-stage pharmaceutical firm focusing on rare blood disorders and sickle cell disease in a cash transaction at $20 per share, representing a total sale value of around $1.1 billion.

Transaction transform’s Forma’s clinical development of etavopivat

CEO of Forma, Frank D. Lee, said:

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Today’s announcement is an exciting milestone that accelerates Forma’s purpose to transform the lives of patients with sickle cell disease and other serious hematological diseases. Novo Nordisk will partner closely with the sickle cell community to amplify our impact for patients worldwide who urgently need new treatment options.

With the purchase of Forma Therapeutics, along with its flagship experimental drug candidate, etavopivat, Novo Nordisk is advancing its scientific footprint and portfolio in hemoglobinopathies, a class of diseases in which the hemoglobin proteins in red blood cells are produced or arranged abnormally.

Rare Disease Head and EVP of Novo Nordisk Ludovic Helfgott said:

Novo Nordisk has worked for more than 40 years to develop and deliver transformative medicines to patients around the world with rare and devastating diseases. By adding Forma’s differentiated approach to address unmet needs for patients, we are taking a step forward in enhancing our sickle cell disease pipeline.

Helfgott added that Novo Nordisk has an ambition of creating a top pipeline o combination and standalone therapies to address sickle cell disease’s underlying causes and complications.

Forma developing etavopivat for anemia treatment

Etavopivat is an experimental once-per-day oral exclusive pyruvate kinase-R (PKR) activator. Forma Therapeutics is developing etavopivat for treating anemia and maintaining the health of red blood cells in persons with sickle cell disease (SCD). SCD is a highly debilitating and life-threatening disease that shortens lifespan. Besides Phase 2 study for patients with Thalassemia and transfusion-dependent SCD, the drug candidate is currently undergoing a global Phase 2/3 study (Hibiscus) for SCD patients.

Lee concluded:

We look forward to working together with Novo Nordisk to serve as a trusted partner to our communities and to advance innovation, access and health equity for patients.