CHICAGO, Aug. 3, 2020 /PRNewswire/ -- GTCR, a leading private equity firm, announced today that its TerSera Therapeutics LLC ("TerSera") portfolio company has entered into a definitive agreement to acquire the product Xermelo® (telotristat ethyl) from Lexicon Pharmaceuticals, Inc. ("Lexicon";NASDAQ:LXRX) for an upfront purchase price of approximately $159 million plus potential milestone payments based on development and commercialization of Xermelo in a new indication.
Xermelo is the first and only approved oral therapy for carcinoid syndrome diarrhea (CSD), a debilitating condition caused by metastatic neuroendocrine tumors. Xermelo was approved by the FDA in February 2017 for use in combination with somatostatin analog (SSA) therapy in adults inadequately controlled by SSA therapy. The product is also being investigated in a Phase 2 clinical study for the treatment of biliary tract cancer tumors.
The add-on acquisition of Xermelo expands TerSera's existing oncology portfolio and is another example of the GTCR Leaders Strategy™ at work. TerSera is GTCR's third partnership with Chairman and CEO Ed Fiorentino having previously partnered together to build Crealta Pharmaceuticals and Actient Pharmaceuticals. Through a series of seven acquisitions since 2017, TerSera has built a portfolio of on-market and development assets focused on the therapeutic areas of oncology and non-opioid pain. The acquisition of Xermelo further expands the company's oncology franchise, which also includes the products Zoladex® (goserelin acetate implant) and Varubi® (rolapitant).
"Xermelo is a great addition to the TerSera portfolio, which now includes six commercial products in two attractive therapeutic areas," said Dean Mihas, Managing Director at GTCR. "This acquisition further demonstrates our commitment to the Leaders Strategy™, having partnered with Ed three times and built three unique, growing specialty pharmaceutical companies."
Mr. Fiorentino added: "Xermelo continues to gain an increasingly important role in carcinoid syndrome diarrhea with a potential future role in other cancers. We are very excited to add Xermelo to our existing oncology portfolio and appreciate the support of GTCR as we've built another specialty pharmaceutical company focused on making a difference for patients."
"With the addition of Xermelo, TerSera has become an even larger, more diversified specialty pharmaceutical business," noted Ben Daverman, Managing Director at GTCR. "We look forward to continuing to support Ed and the TerSera team as we further buildout the franchise and portfolio of unique, growing products."
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Healthcare, Financial Services & Technology, Technology, Media & Telecommunications, and Growth Business Services industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $18 billion in over 200 companies. For more information, please visit www.gtcr.com.
About TerSera Therapeutics
TerSera Therapeutics acquires, develops and markets specialty pharmaceutical products with a focus on oncology and non-opioid pain. Its mission is to provide products which truly make a difference for patients. For more information about TerSera Therapeutics, please visit www.tersera.com.
About XERMELO (telotristat ethyl)
XERMELO is the first and only approved oral therapy for carcinoid syndrome diarrhea. XERMELO targets tryptophan hydroxylase, an enzyme that mediates the excess serotonin production within metastatic neuroendocrine tumor (mNET) cells. XERMELO is approved in the United States, the European Union and certain additional countries for the treatment of carcinoid syndrome diarrhea in combination with somatostatin analog (SSA) therapy in adults inadequately controlled by SSA therapy. Carcinoid syndrome is a rare condition that occurs in patients living with mNETs and is characterized by frequent and debilitating diarrhea. XERMELO targets the overproduction of serotonin inside mNET cells, providing an additional treatment option for patients suffering from carcinoid syndrome diarrhea.
XERMELO (telotristat ethyl) Important Safety Information
- Warnings and Precautions: XERMELO may cause constipation, which can be serious. Monitor for signs and symptoms of constipation and/or severe, persistent, or worsening abdominal pain in patients taking XERMELO. Discontinue XERMELO if severe constipation or severe, persistent, or worsening abdominal pain develops.
- Adverse Reactions: The most common adverse reactions (≥5%) include nausea, headache, increased gamma-glutamyl-transferase, depression, flatulence, decreased appetite, peripheral edema, and pyrexia.
- Drug Interactions: If necessary, consider increasing the dose of concomitant CYP3A4 substrates, as XERMELO may decrease their systemic exposure. If combination treatment with XERMELO and short-acting octreotide is needed, administer short-acting octreotide at least 30 minutes after administering XERMELO.
For more information about XERMELO, see Full Prescribing Information at www.xermelo.com.
Media Contact: Kellie Kennedy, 312-933-4903, [email protected]