GTCR, a leading private equity firm, announced today that its TerSera Therapeutics LLC (“TerSera”) portfolio company has entered into a definitive agreement to acquire the product Xermelo® (telotristat ethyl) from Lexicon Pharmaceuticals, Inc. (“Lexicon”; NASDAQ:LXRX) for an upfront purchase price of approximately $159 million plus potential milestone payments based on development and commercialization of Xermelo in a new indication.
Xermelo is the first and only approved oral therapy for carcinoid syndrome diarrhea (CSD), a debilitating condition caused by metastatic neuroendocrine tumors. Xermelo was approved by the FDA in February 2017 for use in combination with somatostatin analog (SSA) therapy in adults inadequately controlled by SSA therapy. The product is also being investigated in a Phase 2 clinical study for the treatment of biliary tract cancer tumors.
The add-on acquisition of Xermelo expands TerSera’s existing oncology portfolio and is another example of the GTCR Leaders Strategy™ at work. TerSera is GTCR’s third partnership with Chairman and CEO Ed Fiorentino having previously partnered together to build Crealta Pharmaceuticals and Actient Pharmaceuticals. Through a series of seven acquisitions since 2017, TerSera has built a portfolio of on-market and development assets focused on the therapeutic areas of oncology and non-opioid pain. The acquisition of Xermelo further expands the company’s oncology franchise, which also includes the products Zoladex® (goserelin acetate implant) and Varubi® (rolapitant).
“Xermelo is a great addition to the TerSera portfolio, which now includes six commercial products in two attractive therapeutic areas,” said Dean Mihas, Managing Director at GTCR. “This acquisition further demonstrates our commitment to the Leaders Strategy™, having partnered with Ed three times and built three unique, growing specialty pharmaceutical companies.”
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Mr. Fiorentino added: “Xermelo continues to gain an increasingly important role in carcinoid syndrome diarrhea with a potential future role in other cancers. We are very excited to add Xermelo to our existing oncology portfolio and appreciate the support of GTCR as we’ve built another specialty pharmaceutical company focused on making a difference for patients.”
“With the addition of Xermelo, TerSera has become an even larger, more diversified specialty pharmaceutical business,” noted Ben Daverman, Managing Director at GTCR. “We look forward to continuing to support Ed and the TerSera team as we further buildout the franchise and portfolio of unique, growing products.”
Source: Biospace
