TOKYO, April 30 (Reuters) - Japan's Ono Pharmaceutical

Co ( OPHLF ) said on Tuesday its $2.4 billion takeover of

Deciphera Pharmaceuticals ( DCPH ) is a "first step" in

expanding in U.S. and European markets.

WHY IT'S IMPORTANT

With this deal, Ono Pharma joins Japanese rivals Takeda

Pharmaceutical ( TAK ) and Astellas Pharma ( ALPMF ) which have

spent big recently to replenish their drug pipelines.

KEY QUOTES

"We've gotten to stage 1 and 2 on a global level, but in

order to start recording sales at a quicker pace, we need to

obtain a pipeline from outside. This acquisition is the first

step in that direction," Ono Pharma CEO Gyo Sagara said at an

online briefing.

"After this first M&A, this does not mean that we will do a

second or third, but we will always keep an eye on acquiring

good compounds from the outside and will make sure to go in if

we have a chance," he added.

CONTEXT

Ono Pharma is best known globally for its blockbuster cancer

drug Opdivo, which is sold in the U.S. by partner Bristol-Myers

Squibb ( BMY ). The drug expected to lose patent protection in

major markets from 2028.

The purchase includes Deciphera's oral drug Qinlock to treat

a type of gastrointestinal cancer, which received the U.S. Food

and Drug Administration's full approval in 2020.

Another major pipeline prospect is Vimseltinib, a treatment

for a type of tumor found in some joints.

BY THE NUMBERS

Ono Pharma offered $25.60 per share in cash, a premium of

74.7% to U.S.-based Deciphera's previous closing price.

Qinlock had global sales of $163 million in 2023. Ono Pharma

expects Qinlock and Vimseltinib together will reach peak global

sales of $1 billion.

MARKET REACTION

Ono Pharma shares slid 1% on Tuesday, after the deal was

announced on a Japanese holiday on Monday. Deciphera shares shot

up 73%.

(Editing by Ros Russell)