U.S. biotechnology company Incyte Pharma is nearing a definitive agreement valued at up to $2 billion to acquire Star Therapeutics, a specialized developer of therapies targeting blood disorders, the Financial Times reported on Sunday, citing individuals familiar with the matter.
The underlying financial tranche designs and milestone allocation frameworks detailed in the acquisition report include:
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Immediate Upfront Cash Tranche: Under the structural provisions of the reported covenant, Incyte Pharma is set to deploy an immediate upfront consideration of $1.25 billion in cash directly to Star Therapeutics’ venture capital backers.
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Performance Milestone Framework: Supplemental to the initial cash tranche, the agreement locks in an additional $750 million in conditional capital. This secondary financial tranche is scheduled to be disbursed systematically based upon the successful achievement of specific downstream performance milestones.
At present, Reuters noted that it could not immediately independently verify the accuracy of the Financial Times report.