Astellas hit hard by profit-busting setbacks

Japanese drugmaker Astellas (TYO: 4503) expects to book an impairment charge of 70 billion yen ($453 million) in the fourth quarter of Japan’s 2023 fiscal year, which ended last month.

Some 40 billion yen of this figure is the result of dashed hopes for AT808 (ASP2016), an FXN gene replacement therapy for Friedreich's ataxia that the company has now given up on. Astellas had acquired the treatment in buying Audentes for $3 billion in early 2020.

As a result of a review of plans for Evrenzo (roxadustat) for the treatment of anemia of chronic kidney disease sold in Japan and Europe, considering the sales situation in each country, Astellas will book a further impairment loss for intangible assets of approximately 16 billion yen.