AstraZeneca takes option on Prosidion diabetes assets; advances asthma drug

Looking to expand its R&D pipeline in the face of several recent product failures and facing a “patent cliff,” Anglo-Swedish drug major AstraZeneca (LSE: AZN) has entered into an option agreement with Prosidion, a fully-owned subsidiary of Japan’s Astellas Pharma (TYO: 4503), granting AstraZeneca an exclusive option to acquire the Phase II clinical and preclinical assets, PSN821 and PSN 842, respectively, for the treatment of type 2 diabetes.

Early this year, Astellas engaged advisors to consider its options for Oxford, UK-based Prosidion, which it acquired along with its $4 billion acquisition of OSI Pharmaceuticals, which could include minority investment or strategic alliance, a merger or sale of some or all of Prosidion's assets (The Pharma Letter January 11).

AstraZeneca currently has one co-marketed diabetes agent, Onglyza (saxagliptin), but is jointly developing dapagliflozin with US drug major Bristol-Myers Squibb, although this potential type 2 diabetes treatment has so far failed to gain regulatory approval. A final decision from the US Food and Drug Administration is expected on January 28, 2012, but this will come in the face of a negative advisory panel recommendation.