Roche swallows Spark Therapeutics in $4.3bn deal

Roche said it will acquire Spark Therapeutics for $114.50 per share, a premium of about 122% to Spark's closing price on Friday 22 February. With the deal, Roche strengthens its position in the US$15.8bn global hemophilia market.

Roche already sells the bispecific hemophilia A antibody Hemlibra, which currently has an edge over existing treatments, as it doesn't trigger factor VIII antibody formation, which makes existing blood clotting factor VIII replacement therapies inefficient in about 25% of hemophilia A patients. Hemlibra binds to factor IXa and factor X bridging factor VIII function required for effective homeostasis. Gene therapies, however, require just a single administration at best and thus could outcompete Roche's potential blockbuster drug in the longer term. As FDA Commissioner Scott Gottlieb announced in May 2018 he wanted to accelerate approval for factor VIII gene therapies, Roche had to react.

The take over will take place according to Roche's proven recipe that grants as much scientific freedom to companies taken over as possible. Spark, however, is facing  much competition, as other players Biomarin Pharma (Phase III), and uniQure NV (hemophilia B) have prospective treatments in the works.

"Spark Therapeutics' haemophilia A programme could become a new therapeutic option for people living with this disease," said Severin Schwan, Chief Executive of Roche.

Spark's stock tumbled last year after announcing two out of 12 patients showed an unfavourable immune response when treated with a higher dose of Spark's haemophilia therapy SPK-8011. The drug is expected to enter Phase III testing this year. It is also working on a therapy for haemophilia B, as well as treatments for Pompe disease, blindness-causing choroideremia and Huntington's disease.

Besides the hemophilia market, gene therapies promise to open a huge market in orphan diseases, another development priority of Roche. Spark's markets Luxturna, the first gene therapy approved in the US at a price of $850,000-per patient in retinal dystrophy. Ophthalmology is another development priority of Roche.