Otsuka Pharma To Invest Big: $1.1 Billion Deal For Jnana Therapeutics Aims To Revolutionize Treatment
Otsuka Pharmaceutical to acquire Jnana Therapeutics for $1 billion to enhance its drug pipeline.
Breaking News
Aug 01, 2024
Mrudula Kulkarni

Japan’s Otsuka Pharmaceutical (4578.T) announced on Thursday
that it has reached an agreement to acquire Jnana Therapeutics for over $1
billion, aiming to bolster its drug pipeline and research efforts in the Boston
region. This move aligns Otsuka with domestic competitors such as Ono Pharma
(4528.T), Takeda Pharmaceutical (4502.T), and Astellas Pharma (4503.T), all of
whom are pursuing significant international acquisitions to enhance their drug
portfolios.
Under the agreement, Otsuka will pay $800 million to Jnana’s
shareholders, with an additional $325 million contingent upon meeting
development and regulatory milestones. The transaction is slated for completion
by the third quarter of this year. Jnana Therapeutics, a clinical-stage biotech
firm, specializes in therapies for rare diseases and immune disorders, with its
leading candidate JNT-517 targeting phenylketonuria (PKU), a rare genetic
metabolic condition.
Otsuka, known for its psychiatric medications like the
antipsychotic Abilify and cancer therapies, also has a consumer products
division that includes the Pocari Sweat electrolyte drink and Calorie Mate
energy bar. The company is also recognized for developing Abilify MyCite, the
world’s first FDA-approved digitally connected drug.