Astellas Pharma to acquire avacincaptad pegol developer Iveric Bio for $6bn

Japanese pharma company Astellas Pharma has agreed to acquire Nasdaq-listed Iveric Bio in an all-cash deal worth around $5.9 billion with an aim to create a world-class ophthalmology player, while advancing the former’s primary focus on blindness and regeneration.

Based in New Jersey, Iveric Bio is a biopharma company engaged in discovering and developing novel therapies for retinal diseases with substantial unmet medical needs.

In February 2023, Iveric Bio’s new drug application (NDA) for a complement C5 inhibitor called avacincaptad pegol (ACP) was accepted by the US Food and Drug Administration (FDA) for the treatment of geographic atrophy (GA) secondary to age-related macular degeneration (AMD). The application was given priority review by the FDA which has set a target date of 19 August 2023 to take a decision on avacincaptad pegol’s approval for the indication.

In November 2022, the complement C5 protein inhibitor was given breakthrough therapy designation from the FDA for the same indication.

In the two GATHER phase 3 clinical trials, the primary efficacy endpoint of lowering the rate of progression of geographic atrophy was met by avacincaptad pegol with statistical significance.

Astellas Pharma said that the acquisition of Iveric Bio is expected to contribute to its revenue targets for FY2025. Besides, avacincaptad pegol in conjunction with Astellas Pharma’s fezolinetant and PADCEV, is hoped to be a revenue-creating pillar to help make up for the fall in sales of XTANDI because of scheduled patent expiration later this decade.

Naoki Okamura — Astellas Pharma President and CEO said: “We are pleased to reach an agreement with Iveric Bio, a company with exceptional expertise in the R&D of innovative therapeutics in the ophthalmology field.

“Iveric Bio has promising programs including Avacincaptad Pegol (“ACP”), an important program for Geographic Atrophy (“GA”) secondary to Age-Related Macular Degeneration (“AMD”), and capabilities across the entire value chain in the ophthalmology field. We believe that this acquisition will enable us to deliver greater VALUE to patients with ocular diseases at high risk of blindness.”

Astellas Pharma to acquire avacincaptad pegol developer Iveric Bio in $5.9 billion deal. Photo courtesy of Steven Lek/Wiki

As per the terms of the deal, Iveric Bio’s shareholders will be paid $40 per share, which is a 64% premium to its unimpacted closing share price of $24.33 on 31 March 2023. The offer price also represents a 75% premium to the 30-day trading volume weighted average price of the American biopharma company as of the same date.

Glenn P. Sblendorio — Iveric Bio CEO said: “This transaction with Astellas, a highly respected pharmaceutical company, demonstrates the significant value that we have built for our stockholders and recognizes the tremendous work by our dedicated team at Iveric Bio.”

The deal, which is subject to approval by Iveric Bio’s shareholders, regulatory approvals, and other conditions, is expected to close in Q3 2023.