12:16 PM EDT, 04/29/2024 (MT Newswires) -- Deciphera Pharmaceuticals ( DCPH ) on Monday agreed to be acquired by Japan-based ONO Pharmaceutical through a tender offer in a deal worth roughly $2.4 billion.

Under the terms, investors of the US biopharmaceutical company will receive $25.60 per share in cash, representing a premium of about 75% to its closing price on Friday. Deciphera's stock surged 72% in Monday midday trading.

ONO will purchase Deciphera's shares through a tender offer, which commenced immediately. Upon completion, Deciphera will operate as a stand-alone business of ONO Group.

The transaction, which requires US antitrust approval and the tender of a majority of Deciphera's shares, is expected to close in the third quarter. Certain shareholders owning about 28% of Deciphera's stock agreed to tender all their shares in the offer, according to the company.

"Together, we expect to advance and accelerate each organization's important work through combined research and development capabilities and a global commercial footprint," Deciphera Chief Executive Steven Hoerter said in a statement. "Importantly, this acquisition delivers for all of Deciphera's stakeholders."

The acquisition will give ONO access to Deciphera's Qinlock switch-control inhibitor for the treatment of fourth-line gastrointestinal stromal tumor, and its portfolio of multiple additional oncology candidates. The Japanese company anticipates the deal to boost its oncology presence and support its efforts to become a global specialty pharmaceutical company.

"We expect that this acquisition of Deciphera will not only expand ONO's target oncology portfolio, but also accelerate ONO's business development in the (US) and Europe, and strengthen kinase drug discovery research," according to ONO CEO Gyo Sagara. "We respect the innovative culture of Deciphera and look forward to working together to drive further growth for both ONO and Deciphera."

In February, Deciphera reported a fourth-quarter net loss of $0.54 per share, narrowing from $0.60 the year before. Total revenue increased to $48.3 million from $36.3 million in the prior-year quarter.

Price: 25.22, Change: +10.57, Percent Change: +72.15