Astellas to buy Ganymed in potential $1.4 billion deal

Japan’s Astellas Pharma (TYO: 4503) says it has reached an agreement to buy German biopharma company Ganymed Pharmaceuticals in a deal that could potentially reach 1.28 billion euros ($1.4 billion).

The major factor in the acquisition is Astellas’ desire to gain Ganymed’s late-stage cancer drug IMAB362, which has already received orphan drug designation in the USA and Europe for gastric and pancreatic cancer. The Tokyo-based company sees the drug as a potential complementary product to its blockbuster prostate cancer drug Xtandi (enzalutamide) as it seeks to bolster growth in its oncology portfolio. Xtandi brought in $595 million in sales in second-quarter 2016.

"Oncology is one of our focus therapeutic areas and key drivers for our growth. The acquisition of Ganymed will enable Astellas to further expand our oncology presence by adding a late-stage antibody asset with the potential to establish a new pillar following Xtandi," comments Yoshihiko Hatanaka, president and chief executive at Astellas, adding: "We aim to deliver a potential new therapeutic option to cancer patients who currently have limited treatment options available to them."