Paratek Pharmaceuticals Acquires Optinose in $330M Deal, Expanding Portfolio Beyond Antibiotics

Paratek Pharmaceuticals has announced its acquisition of Optinose and its chronic rhinosinusitis (CRS) nasal spray Xhance in a deal worth up to $330 million. This strategic move marks Paratek's expansion beyond its core antibiotic business and into the respiratory health market.

Acquisition Details and Strategic Rationale

Paratek will pay $9 per share upfront for Optinose, representing a 50% premium on the company's closing price prior to the announcement. The deal includes contingent value rights (CVR) that could increase the total value to $14 per share, based on future revenue milestones.

The acquisition was triggered by a recent label expansion for Xhance, which received FDA approval 12 months ago for use in CRS patients without nasal polyps. This expansion significantly increases the potential patient population for Xhance by 10-fold, reaching approximately 10 million individuals.

Dr. Evan Loh, CEO of Paratek, emphasized the strategic fit of the acquisition, stating, "The majority of the primary care physicians Paratek calls on for Nuzyra and its approved indications are also treating patients with CRS, offering a key overlap in targets for our salesforce."

Xhance: A Unique Treatment for Chronic Rhinosinusitis

Xhance, originally approved in 2017 for CRS patients with nasal polyps, is now the only FDA-approved treatment for CRS patients both with and without polyps. This drug-device combination product represents a significant advancement in CRS treatment options.

Dr. Ramy Mahmoud, CEO of Optinose, expressed optimism about the acquisition, noting, "Paratek, with its robust commercial and medical capabilities, has the potential to rapidly extend awareness of Xhance to primary care providers who treat the majority of patients with CRS."

Implications for Paratek's Growth Strategy

This acquisition aligns with Paratek's broader strategy to diversify its portfolio and leverage its existing commercial infrastructure. The company plans to utilize its primary care-focused sales force, which currently promotes the antibiotic Nuzyra, to market Xhance to a wider audience of healthcare providers.

Paratek's move comes two years after its own acquisition by Novo Holdings and Gurnet Point Capital for up to $462 million. The company's flagship product, Nuzyra, approved in 2018, generated sales of $137 million in 2022, with analysts projecting peak sales potential exceeding $500 million.

As the pharmaceutical landscape continues to evolve, Paratek's expansion into the respiratory health market through the Optinose acquisition represents a significant development in the industry, potentially setting the stage for further portfolio diversification and growth.