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Akebia, Keryx agree to merge
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Akebia Therapeutics Inc. and Keryx Biopharmaceuticals Inc. have approved a definitive merger agreement under which the companies will combine in an all-stock agreement. The new company will be named Akebia Therapeutics Inc. and company executives say the transaction should be completed by the end of the year.
The product line that comes with the merger includes Keryx’s Auryxia (ferric citrate), currently FDA-approved for use in the U.S. to treat patients with kidney disease who are on dialysis with hyperphosphatemia as well as non-dialysis dependent CKD patients with iron deficiency anemia, and Akebia’s vadadustat, a daily oral hypoxia-inducible factor stabilizer, currently in phase 3 clinical trials aimed at treating anemia in patients with kidney disease.
John P. Butler, president and CEO of Akebia, is expected to lead the combined company, and Keryx will appoint the chairperson of the Board of Directors of the combined company. Additionally, Jason A. Amello, Akebia’s chief financial officer, is expected to serve in the same capacity on the management team of the combined company.
“The strategic and financial drivers of this merger are compelling,” Butler said in a statement. “Combining Akebia and Keryx creates a leading renal company and provides it with the infrastructure to maximize the market potential of Auryxia and build launch momentum for vadadustat in the United States, subject to FDA approval. I look forward to leading the talented teams of both Akebia and Keryx as we work to establish new standards of renal care and unlock growth potential for shareholders.”
According to a press statement released by both companies, Keryx shareholders will receive 0.37433 common shares of Akebia for each share of Keryx they own. The exchange results in implied equity ownership in the combined company of 49.4% for Akebia shareholders and 50.6% for Keryx shareholders on a fully-diluted basis. Keryx officials reported that its largest shareholder, The Baupost Group, supports the merger and has agreed to convert outstanding notes prior to close of the transaction. The boards of directors of both companies have also unanimously approved the merger.