Japan's Astellas to buy US biotech group Agensys for up to $537 million

Through its US subsidiary, Japanese drug major Astellas has entered into a definitive agreement to acquire the US biotechnology firm Agensys for $387.0 million upfront, assuming around $30.0 million net cash balance at closing. In addition, Agensys' current shareholders will retain the right to receive a maximum of $150.0 million on the achievement of various development milestones. Subject to customary procedures and the approval of all Agensys shareholders, the transaction is expected to complete by the end of December.

Masafumi Nogimori, chief executive of Astellas, Japan's second largest pharmaceutical group, said the firm "will continue to build our company into a strong, global pharmaceutical leader. Agensys will be the cornerstone of our biologics efforts and an integral component of building our oncology efforts within our franchise."

The US firm, originally founded by University of California at Los Angeles scientists and known as UroGenesys, was created with $8.0 million in seed money from private donors and "angel investors," in 1996. Using technology discovered at the UCLA, the firm's researchers have developed at least seven candidates with potential as oncology treatments, including for pancreatic, lung, colon, breast and ovarian cancers.