Otsuka said to be buying Astex Pharma

Japanese mid-size drugmaker Otsuka (TYO: 4768) is planning to acquire USA-based Astex Pharmaceuticals (Nasdaq: ASTX) for about 90 billion yen ($912 million) to access the cancer drugs that Astex is developing, according to Japan’s Nikkei, but unconfirmed by either party.

Astex shares surged 24% to a nine-year high of $8.27 at the close of New York trading yesterday (September 4), valuing the California-based company at $785 million, noted Bloomberg.

Last year, Astex revealed that clinical development of one of its lead candidates, amuvatinib (MP-470), had been discontinued (The Pharma Letter September 25, 2012). Amuvatinib was being investigated in the Phase II ESCAPE (TrEatment of Small Cell lung cancer with Amuvatinib in combination with Platinum Etoposide) study. Astex’ SGI-110, an experimental treatment for acute myeloid leukemia, had positive results in a mid-stage clinical trial, the company said in an August 28 web site posting.