French biopharmaceutical company Ipsen (Euronext Paris:IPN) (ADR:IPSEY) announced on Wednesday that it has agreed to acquire all outstanding shares of Memo Therapeutics AG in a transaction focused on potravitug, a Phase II monoclonal antibody for BK polyomavirus-associated nephropathy, expanding its rare disease portfolio.

The totality of evidence from the Phase II SAFE KIDNEY II trial supports the planned initiation of a pivotal Phase II/III trial later this year, with potravitug demonstrating antiviral efficacy, histological improvement and no treatment-related serious adverse events.

Under the agreement, Memo Therapeutics shareholders will receive EUR200m in cash at closing on a cash-free and debt-free basis, with additional development, regulatory and sales milestone payments bringing the total potential consideration to more than EUR700m.

Before closing, assets and employees not related to potravitug will be transferred to a newly incorporated company, Memorises Bio, which will be retained by Memo Therapeutics' shareholders.

The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions. Ipsen said the financial impact is factored into its current full-year guidance.