Forma Therapeutics shares jump 50%; here is why

Forma Therapeutics Holdings Inc (NASDAQ: FMTX) shares are up 50% after announcing a definitive agreement with Novo Nordisk. According to the agreement terms, Novo Nordisk will purchase the clinical-stage pharmaceutical firm focusing on rare blood disorders and sickle cell disease in a cash transaction at $20 per share, representing a total sale value of around $1.1 billion.

Transaction transform’s Forma’s clinical development of etavopivat

CEO of Forma, Frank D. Lee, said:

With the purchase of Forma Therapeutics, along with its flagship experimental drug candidate, etavopivat, Novo Nordisk is advancing its scientific footprint and portfolio in hemoglobinopathies, a class of diseases in which the hemoglobin proteins in red blood cells are produced or arranged abnormally.

Rare Disease Head and EVP of Novo Nordisk Ludovic Helfgott said:

Helfgott added that Novo Nordisk has an ambition of creating a top pipeline o combination and standalone therapies to address sickle cell disease's underlying causes and complications.

Forma developing etavopivat for anemia treatment

Etavopivat is an experimental once-per-day oral exclusive pyruvate kinase-R (PKR) activator. Forma Therapeutics is developing etavopivat for treating anemia and maintaining the health of red blood cells in persons with sickle cell disease (SCD). SCD is a highly debilitating and life-threatening disease that shortens lifespan. Besides Phase 2 study for patients with Thalassemia and transfusion-dependent SCD, the drug candidate is currently undergoing a global Phase 2/3 study (Hibiscus) for SCD patients.

Lee concluded: