Iveric Bio is a US-based biopharmaceutical company focused on novel therapies for ophthalmologic diseases and is currently developing Avacincaptad Pegol (ACP), for Geographic Atrophy (GA) secondary to Age-Related Macular Degeneration (AMD)
Astellas Leiden Bio Science Park, The Netherlands. (Credit: Vysotsky/commons.wikimedia)
Japan-based Astellas Pharma has agreed to acquire Iveric Bio, a US-based biopharmaceutical company focused on the treatment of retinal diseases, for a total cash consideration of around $5.9bn.
The company’s US business unit Astellas US Holding, through its wholly owned subsidiary Berry Merger Sub, has signed the agreement with Iveric Bio.
Under the terms of the agreement, Astellas will purchase about 148.2 million outstanding shares of Iveric Bio at a price of $40 per share in cash, on a fully diluted basis.
The acquisition is expected to be completed in the second quarter of Astellas’ fiscal year 2023.
Its closing is subject to certain customary closing conditions, including receipt of necessary regulatory approvals and approval of Iveric Bio’s stockholders.
Upon closing, Iveric Bio will become an indirect wholly-owned subsidiary of Astellas.
Iveric Bio chief executive officer Glenn P Sblendorio said: “This transaction with Astellas, a highly respected pharmaceutical company, demonstrates the significant value that we have built for our stockholders and recognizes the tremendous work by our dedicated team at Iveric Bio.
Iveric Bio president Pravin U. Dugel said: “The opportunity to create a world-class entity with the ophthalmology expertise and capabilities of Iveric Bio and the global reach and resources of Astellas is unique and has the potential to benefit patients worldwide suffering from blinding retinal diseases, including GA.”
Iveric Bio is a biopharmaceutical company focused on the discovery and development of novel therapies to treat ophthalmologic diseases.
The US drugmaker is currently developing promising programmes, including Avacincaptad Pegol (ACP), for Geographic Atrophy (GA) secondary to Age-Related Macular Degeneration (AMD).
ACP is a PEGylated aptamer that inhibits C5 cleavage into C5a and C5b and is used as an investigational drug for the treatment of GA secondary to AMD.
In February this year, the US Food and Drug Administration (FDA) accepted the company’s New Drug Application (NDA) for ACP to treat GA secondary to AMD.
The US health agency has granted priority review for the company’s NDA with a Prescription Drug User Fee Act (PDUFA) target date of 19 August 2023.
Through the acquisition, Astellas aims to further boost its R&D strategy, dubbed Focus Area Approach, to create advanced drugs for diseases with high unmet medical needs.
ACP, together with fezolinetant and PADCEV, will generate revenue to compensate for the decline of XTANDI, whose patent is expected to be expired later this decade.
Astellas intends to fund the acquisition through newly procured bank loans, issuing of commercial paper totalling around JPY800bn ($5.85bn) and available cash on hand.
The Japanese pharmaceutical company plans to repay the debt within the coming five to seven years.
Astellas president and CEO Naoki Okamura said: “We are pleased to reach an agreement with Iveric Bio, a company with exceptional expertise in the R&D of innovative therapeutics in the ophthalmology field.
“Iveric Bio has promising programmes including Avacincaptad Pegol (ACP), an important program for Geographic Atrophy (“GA”) secondary to Age-Related Macular Degeneration (AMD), and capabilities across the entire value chain in the ophthalmology field.
“We believe that this acquisition will enable us to deliver greater VALUE to patients with ocular diseases at high risk of blindness.”