Astellas acquires I-O partner Potenza Therapeutics

Having taken an exclusive option to acquire US biotech firm Potenza Therapeutics back in 2015, as part of a research collaboration, Japanese pharma major Astellas Pharma (TYO: 4503) yesterday closed the transaction, with the news leading to a 2.4% downturn to 1,656 yen in its share price in today’s trading.

This acquisition marks the successful outcome of a collaboration agreement to build a portfolio of novel immuno-oncology (I-O) therapies. The clinical I-O therapies developed through this collaboration may also provide a platform for I-O combinations with Astellas’ existing non-IO programs for life cycle management and future novel I-O combinations.

By exercising its options under the warrant purchase agreement, Astellas paid an upfront fee of $164.6 million to acquire Potenza and Potenza’s shareholders will be eligible for additional payments that total up to $240.1 million, depending on the progress of various programs in clinical development.