Iveric Bio

History

2023: Astellas Pharma bought Iveric Bio

On May 1, 2023, the Japanese pharmaceutical holding Astellas announced the conclusion of an agreement on the acquisition of the American company Iveric Bio. This deal is expected to enable Astellas to strengthen its position in the ophthalmic therapy market.

New Jersey-based firm Iveric Bio, formerly known as Ophthotech, is developing treatments for retinal diseases. A key asset of the company is the drug avacincaptad pegol (Avacincaptad Pegol, ACP), which is currently being tested. It is intended to treat geographic atrophy - late-stage macular degeneration, a common cause of vision loss in older adults. The drug targets the C5 protein, which is suspected of causing the development of scars associated with the disease. The commercial name of the drug substance is Zimura. It is assumed that the drug will enter the market by the end of 2023.

Under the terms of the signed agreement, Astellas will acquire all shares of Iveric Bio for $40. This is approximately 22% more than the value of the securities of the acquired company as of April 28, 2023, when the shares were worth $32.89. Thus, the total amount of the transaction will be approximately $5.9 billion. The takeover is planned to be completed in the third quarter of 2023 after obtaining the necessary permits from regulators. The deal will give Astellas access to drug candidates to treat about 160 million people worldwide.

It is noted that Astellas will finance the purchase of Iveric Bio through short-term loans and commercial securities worth about 800 billion yen (approximately $5.82 billion at the exchange rate as of May 2, 2023). This deal will be the largest acquisition in the history of the Japanese holding. In addition, the agreement marks the fifth major overseas takeover of Astellas since 2019.^[1]

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