Irish biotech company Shire has signed a definitive agreement to sell its oncology business to Servier for $2.4bn.

The oncology portfolio is comprised of in-market products, Oncaspar (pegaspargase) to treat acute lymphoblastic leukaemia (ALL), and ex-US rights to Onivyde (irinotecan pegylated liposomal formulation) for metastatic pancreatic cancer following gemcitabine-based therapy.

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Servier will gain Calaspargase Pegol (Cal-PEG), which is currently under regulatory review in the US for ALL, along with two early stage immuno-oncology pipeline products.

This follows a divestment process by Shire in January intended to allow the company to focus on its core areas and bolster its presence in the rare diseases market.

Shire CEO Flemming Ornskov said: “While the Oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire’s longer-term strategy.

“This acquisition allows us to establish a direct commercial presence in the US, the world’s leading pharmaceuticals market, and to strengthen our portfolio of marketed products.”

“We will continue to evaluate our portfolio for opportunities to unlock further value and sharpen our focus on rare disease leadership with selective disposals of non-strategic assets.”

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For Servier, the deal provides an immediate and direct commercial footprint in the US, and boosts its oncology portfolio and pipeline in other international markets.

Servier group president Olivier Laureau said: “The acquisition of Shire’s oncology franchise enables Servier to meet its strategic ambitions to become a global key player in oncology.

“As an essential step in the evolution of the group, this acquisition allows us to establish a direct commercial presence in the US, the world’s leading pharmaceuticals market, and to strengthen our portfolio of marketed products in the territories where Servier is already present.”

The company intends to commercialise its products in the US through a newly created unit called Servier Pharmaceuticals.

Shire and Servier expect to close the acquisition in the second or third quarter of this year.