Ipsen has announced plans to acquire Clementia Pharmaceuticals, including its key late-stage clinical asset Palovarotene.

Under the terms of the agreement, Ipsen will pay $25.00 per share in cash upfront on completion of the transaction, for an initial aggregate consideration of $1.04 billion, plus deferred payments on the achievement of a future regulatory milestones.

The deal will enable Ipsen to transform its rare disease portfolio by leveraging Clementia’s expertise with the company’s global commercial footprint, to provide life-altering treatments to patients with unmet medical needs.

Palovarotene is an investigational retinoic acid receptor gamma (RARγ) selective agonist, for the treatment of fibrodysplasia ossificans progressiva (FOP), multiple osteochondromas (MO) and other diseases. It has rare pediatric disease and breakthrough therapy designations for the treatment of an ultra-rare bone disorder and a path to approval in 2020.

David Meek, chief executive officer of Ipsen, commented, “The acquisition of Clementia Pharmaceuticals accelerates the ongoing transformation of Ipsen as we are successfully executing on our external innovation strategy to identify and acquire innovative medicines to serve patients with unmet medical needs.

It will also help the company to execute on a key strategic objective to increase the value of the pipeline with innovative first-in-class or best-in-class assets.

“Through this transaction, we will gain scientific expertise, exceptional talent, and a cornerstone ultra-rare disease drug candidate with rare paediatric disease and breakthrough therapy designations, potential US approval in 2020 and additional indications to follow," Meek continued.

"We look forward to working closely with Clementia to successfully integrate two companies that share a similar patient-centric culture and the ambition to deliver new treatments to patients with unmet medical needs.”