Astellas Pharma is buying Iveric Bio Inc for about $5.9 billion. (Image courtesy of Adobe Stock)
Astellas Pharma Inc. and Iveric Bio announced that the companies have entered into a definitive agreement under which Astellas through Berry Merger Sub Inc., a wholly owned subsidiary of Astellas US Holding, Inc., has agreed to acquire 100% of the shares in circulation from Iveric Bio.
Japan-based Astellas is buying Iveric Bio Inc for about $5.9 billion in its biggest acquisition yet, giving it access to a range of eye treatments.
Based in New Jersey, Iveric focuses on developing treatment options for retinal diseases, which is in line with Astellas’ focus on blindness and regeneration therapies.
The companies indicated in a press release that in the acquisition, Iveric Bio will become an indirectly wholly owned subsidiary of Astellas.
“We are pleased to reach an agreement with Iveric Bio, a company with exceptional experience in the R&D of innovative therapeutics in the field of ophthalmology.” Naoki Okamura, president and CEO, Astellas, said in a press release. “Iveric Bio has promising programs such as avacincaptad pegol (ACP), an important program for geographic atrophy secondary to age-related macular degeneration, and capabilities across the value chain in the field of ophthalmology . We believe this acquisition will allow us to provide more VALUE for patients with eye diseases at high risk of blindness.”
“This transaction with Astellas, a well-respected pharmaceutical company, demonstrates the significant value we have created for our shareholders and recognizes the tremendous work of our team dedicated to Iveric Bio,” said Glenn P. Sblendorio, CEO of Iveric Bio.
“The opportunity to create a world-class entity with Iveric Bio’s ophthalmology expertise and capabilities and Astellas’ global reach and resources is unique and has the potential to benefit patients around the world who suffer from blinding retinal diseases, including GA,” said Pravin U. Dugel, MD, president of Iveric Bio.
Strategic objectives of the acquisition
According to the companies, Astellas aims to become a value-driven life science innovator to realize it is “at the forefront of healthcare change to turn breakthrough science into value for patients.”
Iveric Bio focuses on the discovery and development of new treatments in the field of ophthalmology. The company announced in February that the FDA accepted the submission of a New Drug Application (NDA) for ACP for the treatment of GA secondary to AMD. The NDA has received priority review with a target date of the Prescription Drug User Fee Act (PDUFA) of August 19.
ACP, a complement C5 inhibitor, is an investigational drug for GA secondary to AMD and has significant potential to provide value to a large and underserved patient base. ACP met its primary efficacy endpoint (reduction in the rate of GA progression) with statistical significance in two pivotal clinical trials, (GATHER Clinical Trials) and has received Breakthrough Therapy Designation*1 from the FDA for this indication.
In addition, the acquisition of Iveric Bio will provide a foundation of ophthalmology-focused capabilities, including a multifaceted commercial team, a broad network of ophthalmology experts, established relationships with medical institutions, and the infrastructure and expertise to drive the combination of the company. ophthalmology business in the future.
In addition, through the acquired capabilities, Astellas will accelerate preclinical and clinical development and commercialization activities to contribute positively to the objectives of Primary Focus, “Blindness and regeneration”.
According to the press release, the funds for the acquisition consist of funds recently acquired from bank loans and commercial paper issuance totaling approximately ¥800 billion and existing cash. Astellas expects to pay off this debt in the next five to seven years. Completion of the acquisition is not subject to a financing condition. Astellas does not plan to make any changes to its dividend policy after the acquisition.
The companies noted that the closing of the proposed acquisition is subject to the approval of Iveric Bio stockholders and other customary closing conditions, including receipt of required regulatory approvals. The companies expect to complete the acquisition in the second quarter of Astellas’ fiscal year 2023 (calendar third quarter of 2023).
