AstraZeneca to pay up to $1.15 billion to acquire Pearl Therapeutics

In a further “strategic” bolt-on acquisition for Anglo-Swedish drug major AstraZeneca (LSE: AZN) in less than a month, the company revealed this morning (June 10) that it has entered into a definitive agreement to buy Pearl Therapeutics, a privately held company based in Redwood City, California, focused on the development of inhaled small-molecule therapeutics for respiratory disease, for a total cost of up to $1.15 billion.

The acquisition will give AstraZeneca access to a potential new treatment for chronic obstructive pulmonary disease (COPD), currently in late-stage development, and inhaler and formulation technology that provides a platform for future combination products. Just last month, the company announced that it is to acquire Omthera, company focused on the development and commercialization of new therapies for abnormal levels of lipids in the blood, or dyslipidemia, in a deal worth up to $443 million (The Pharma Letter May 28).

Under the terms of the deal, AstraZeneca will acquire 100% of Pearl’s shares for an initial consideration of $560 million payable on completion. In addition, a deferred consideration of up to $450 million becomes payable if specified development and regulatory milestones in respect of any triple combination therapies and selected future products that AstraZeneca develops using Pearl’s technology platform are achieved. Sales-related payments of up to a further $140 million are payable if pre-agreed cumulative sales thresholds are exceeded, resulting in a total potential acquisition cost of up to $1.15 billion. The proposed transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2013. The acquisition of Pearl Therapeutics has no impact on AstraZeneca’s financial guidance for 2013, the London-based firm stated.