Published on 17 May 2022 on Zacks via Yahoo Finance

KemPharm (KMPH) Stock Up on Deal to Acquire Orphazyme for $12.8M

Shares of KemPharm, Inc. KMPH were up 7.1% on Monday after the company announced on May 15 that it has signed a definitive agreement to acquire Denmark-based Orphazyme A/S (currently in reconstruction).

With the latest deal, KemPharm is looking to acquire Orphazyme’s arimoclomol, an orally-delivered, first-in-class heat shock protein amplifier, which is being developed for the treatment for Niemann-Pick disease type C (“NPC”), an ultra-rare neurodegenerative disease. Currently, there is no approved therapy for the given indication in the United States.

Per the agreement, KemPharm will acquire all the assets and operations of Orphazyme for $12.8 million in cash. Subject to not only customary closing conditions, but also approvals by Orphazyme’s creditors and the Danish bankruptcy court, the transaction is expected to be completed by Jun 1, 2022.