US biotechnology firm Incyte Corporation is reportedly nearing an agreement to acquire Star Therapeutics, a privately held developer specializing in treatments for blood disorders, in a deal valued at up to $2 billion. The transaction, expected to be announced imminently, would involve an initial upfront payment of approximately $1.25 billion in cash to Star’s venture capital investors, with an additional $750 million contingent upon the achievement of specific developmental and commercial milestones.

Star Therapeutics is currently advancing an antibody therapy, VGA039, designed to treat von Willebrand disease, the most common inherited bleeding disorder. The drug is in late-stage clinical trials and has been granted fast-track status by the US Food and Drug Administration, which may accelerate its regulatory review process. Unlike current standard treatments requiring multiple weekly infusions, Star’s candidate offers a monthly subcutaneous injection, potentially improving patient adherence by enabling use as a preventive therapy.

The acquisition would mark the first major deal announced under Incyte’s new leadership. Bill Meury, who assumed the role of CEO last year, has emphasized a strategy focused on bolstering the company’s development pipeline through targeted acquisitions alongside internal research efforts. Meury, known for orchestrating the $14 billion sale of Karuna Therapeutics to Bristol Myers Squibb in 2023, has stated ambitions to address the anticipated revenue gap following the patent expiration of Incyte’s blood cancer drug Jakafi in 2028. Incyte currently has nine experimental therapies in phase-three clinical trials.

Star Therapeutics, backed by venture capital firms including Sofinnova Investments, RA Capital Management, and Catalio Capital Management, had been exploring a potential initial public offering prior to engaging in acquisition discussions. Both companies have declined to comment on the reported transaction.

The potential acquisition forms part of a broader trend in the biotech sector, where midsized companies are increasingly engaging in high-value deals to enhance their product portfolios amid competition from larger pharmaceutical companies. This year alone, several significant transactions have taken place, including Neurocrine Biosciences’ $2.9 billion acquisition of Soleno Therapeutics and Belgian company UCB’s deal valued at up to $2.2 billion for Candid Therapeutics.

Globally, biotech mergers and acquisitions have reached nearly $211 billion year-to-date, signaling robust deal-making activity within the industry. Incyte’s shares have risen close to 50 percent since Meury’s appointment, giving the company a market capitalization exceeding $20 billion as of the latest trading session.

With its expertise in hematology, Incyte is positioned to potentially accelerate the development and commercialization of Star’s led therapy, which could address a substantial patient population estimated to number in the hundreds of thousands in the US alone, according to data from the Centers for Disease Control and Prevention.