Japanese Drugmaker Astellas Pharma Acquires Iveric Bio for $5.9 Billion
Japan-based Astellas Pharma announced it is acquiring Iveric Bio, maker of a geographic atrophy drug in late-stage development, for $5.9 billion.
Under terms of the agreement, the companies entered into a definitive agreement under which Berry Merger Sub Inc., a wholly-owned subsidiary of Astellas US Holding, agreed to acquire 100% of the outstanding shares of Iveric Bio for $40 per share in cash for a total equity value of approximately $5.9 billion. The deal represents a 22% premium to Iveric’s closing price of $32.89 on April 28. The acquisition will be funded through cash and debt.
Iveric Bio will become an indirectly wholly-owned subsidiary of Astellas. The boards of directors of both companies have unanimously approved the transaction.
"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," Naoki Okamura, President and CEO of Astellas, said in a company news release. "Iveric Bio has promising programs including avacincaptad pegol, 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."
In February, the FDA accepted for filing a new drug application (NDA) for avacincaptad (ACP) for the treatment of GA secondary to AMD. The NDA was granted priority review with a Prescription Drug User Fee Act goal date of August 19, 2023.
View EyewireTV’s coverage of the NDA filing here.
The NDA submission was based on the 12-month prespecified primary efficacy and safety results from the GATHER1 and GATHER2 clinical trials. ACP, a complement C5 inhibitor, is the first and only investigational therapy to receive 'Breakthrough Therapy' designation for GA secondary to AMD.
"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," Glenn P. Sblendorio, Chief Executive Officer of Iveric Bio, said in the news release.
"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," said Pravin U. Dugel, MD, President of Iveric Bio.
Astellas stated that it has identified five ‘Primary Focuses,’ including "Blindness & Regeneration," and is prioritizing investment resources in these areas. THe company said the acquisition of Iveric Bio will provide a foundation of ophthalmology focused capabilities, including “a multi-faceted commercial team, expansive network of experts in the ophthalmology field, established relationships with medical institutions, and the infrastructure and experience to drive our combined ophthalmology business going forward.” Astellas said that through the acquired capabilities, Astellas will accelerate preclinical and clinical development and commercialization activities to positively contribute to the goals of its "Blindness & Regeneration” primary focus.
The acquisition of Iveric Bio comes about 2 months after the FDA approved Apellis Pharmaceuticals' Syfovre (pegcetacoplan), the first approved treatment of geographic atrophy (GA) secondary to age-related macular degeneration (AMD).
Astellas and Iveric Bio expect the acquisition to be completed in the third quarter of 2023, which is the second quarter of Astellas' fiscal year 2023.