Astellas Pharma's Acquisition of Propella Therapeutics
Thursday, November 16, 2023
Astellas Pharma Inc. (TSE: 4503) and Propella Therapeutics, Inc. have jointly declared a merger agreement wherein Astellas will acquire Propella through its U.S. subsidiary. Propella, a privately held biopharmaceutical firm, specializes in developing new oncology drugs by combining medicinal chemistry with lymphatic targeting.
As part of the acquisition, Astellas will gain ownership of PRL-02 (abiraterone decanoate), an advanced androgen biosynthesis inhibitor developed by Propella for the treatment of prostate cancer. PRL-02, a unique prodrug of abiraterone, is designed to achieve high concentrations in target tissues following intramuscular injection. The drug, currently in Phase 1 clinical trials, is expected to enter Phase 2a clinical trials in 2024.
Astellas, stated that the acquisition aligns with Astellas' strategy to address high unmet medical needs and expressed confidence in the synergy between Propella's program and Astellas' global development and commercialization capabilities in cancer and urology.
Propella, emphasized the company's focus on developing highly selective inhibitors for prostate cancer treatment. He expressed satisfaction that Astellas recognizes the potential of PRL-02 as a best-in-class therapeutic and is committed to supporting its further development.
Under the terms of the agreement, Astellas will pay approximately US$175 million to acquire all outstanding common stock and equity interests in Propella. The transaction is anticipated to close during Astellas' fiscal year 2023, ending on March 31, 2024, subject to customary closing conditions. The financial impact on Astellas for the fiscal year ending March 31, 2024, is expected to be limited.
A brief overview of the acquisition details, including the acquirer, major shareholders, consideration, and closing date, was provided. Additionally, information about Propella, such as its location, representative, establishment year, and the absence of a previous business relationship with Astellas, was outlined. Stifel, Nicolaus & Company, Incorporated served as the exclusive financial advisor, and Cooley LLP provided legal advice to Propella in this transaction.
The definition of a prodrug as drugs with increased bioavailability through metabolic reactions in the body was included.
Source: prnewswire.com
