Astellas to acquire development partner iota Biosciences

Japanese pharma major Astellas (TYO: 4503) saw its shares dip 1% today, after it revealed that it is to buy iota Biosciences for as much as $304 million.

Astellas and iota previously entered into a research and development agreement in August 2019 to jointly conduct research and development activities associated with iota’s ultrasonic-powered bioelectronic devices (also known as “neural dust”) in a number of indications. In carrying out the activities contemplated under the R&D Agreement, the companies have evaluated detailed specifications for implantable medical devices focused on multiple diseases with high unmet medical needs.

Through the acquisition of iota, Astellas will acquire iota’s unique bioelectronics technology and world-class talent. This acquisition, which contemplates the utilization of iota’s unique technology as a platform to advance innovation in the bioelectronics field, is expected to accelerate Astellas’ Rx+ business not only by expediting the Rx+ projects previously covered under the R&D Agreement but also by allowing exploration of other applications of iota’s unique bioelectronics technology for new target diseases and developing new technologies.