On Monday, Japan’s Astellas Pharma (4503.T) announced its largest purchase, buying U.S. pharmaceutical Iveric Bio Inc. for $5.9 billion to gain access to ophthalmic medicines.
Astellas announced that Berry Merger Sub Inc., a fully owned subsidiary of Astellas U.S. Holding, will acquire Iveric for $40 per share in cash.
Iveric’s April 28 closing price was $32.89, a 22% premium.
New Jersey-based Iveric, previously Ophthotech, develops retinal disease remedies. ACP, the company’s main asset, is in trials to treat geographic atrophy, the advanced stage of macular degeneration, which causes visual loss in the elderly.
ACP targets the C5 protein that may cause geographic atrophy scarring.
ACP received priority evaluation from the FDA in February and maybe commercialized by the end of the year if approved.
In late 2019, Astellas bought U.S. biotech Xyphos Biosciences for $665 million and Audentes Therapeutics Inc. for $3 billion.
Before then, its largest acquisition was OSI Pharmaceuticals Inc., for $3.8 billion in 2010.
Astellas shares rose 1.9% in Tokyo, surpassing the Nikkei (.N225)’s 0.7% increase.
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