Ambit, Daiichi Sankyo deal

Daiichi Sankyo will acquire Ambit Biosciences for up to $19.50 per share, or about $415 million on a fully diluted basis. Ambit shareholders will receive $15 per share in cash, or about $315 million, and a contingent value right (CVR) worth up to $4.50, or about $95 million, tied to regulatory and sales milestones of the company's quizartinib. The cash price is an 83% premium to Ambit's closing price of $8.20 on Sept. 26, before the deal was announced.

Quizartinib, an oral small molecule FMS-like tyrosine kinase 3 ( FLT3; CD135) inhibitor, is in Phase III testing to treat relapsed or refractory acute myelogenous leukemia (AML) in patients with FLT3 mutations, which is expected to be completed in 2016-17. Quizartinib has Fast Track designation in the U.S. and Orphan Drug designation for the indication in the U.S. and EU. ...