Astellas to acquire Belgian drug discovery firm for up to 800 million euros

Japanese drug major Astellas Pharma (TYO: 4503) has entered into a definitive agreement to acquire Ogeda, a privately owned drug discovery company.

Based in Belgium, Ogeda is a clinical-stage drug discovery company that discovers and develops small molecule drugs targeting G-protein coupled receptors (GPCRs), which until October was known as Euroscreen. Its lead investigational candidate, fezolinetant, is a selective NK3 receptor antagonist, and the positive data from a Phase IIa study result for the non-hormonal treatment of menopause-related vasomotor symptoms (MR-VMS) was announced in January 2017. This transaction expands Astellas' late stage pipeline and is expected to contribute to its mid-to-long term growth.

Under the accord, Astellas has agreed to pay up to a total of 800 million euros ($856 million). Astellas will make an initial payment of 500 million euros in consideration of 100% of the equity in Ogeda at the closing of the transaction. Then Ogeda shareholders will be eligible to receive an additional 300 million with attainment of certain clinical development and regulatory milestones for fezolinetant. Upon completion of the transaction, Ogeda would become a wholly-owned subsidiary of Astellas. The closing of the transaction is subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of the United States, and is expected to be finalized in the second quarter of 2017.