Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo  >  Astellas Pharma Inc.    4503   JP3942400007

ASTELLAS PHARMA INC.

(4503)
  Report  
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Japan's Astellas to buy Audentes for $3 billion in high-priced gene therapy bet

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/03/2019 | 03:14am EST
Astellas Pharma's logo is pictured at its headquarters in Tokyo

Japan's Astellas Pharma Inc is buying U.S. drugmaker Audentes Therapeutics Inc for about $3 billion in cash, in a high-priced push to make genetic medicines a key area of growth.

Gene therapies are one of the hottest areas of drug research and Astellas, Japan's second-largest drugmaker by sales, is offering $60 per share for San Francisco-based Audentes, a 110% premium to its closing price on Monday.

Citi analyst Hidemaru Yamaguchi said that while the deal looked expensive, it was a positive move for Astellas as Audentes had "cutting-edge gene therapy modalities".

"We thought it was only a matter of time before Astellas entered the gene therapy market," he wrote in a note for clients, adding it had already licensed development rights for a domestic gene therapy in Amyotrophic lateral sclerosis (ALS).

Gene therapies aim to cure diseases by replacing the missing or mutated version of a gene found in a patient's cells with healthy copies. With the potential to cure devastating illnesses in a single dose, drugmakers say they justify prices well above $1 million per patient.

"As a result of this acquisition, Astellas will obtain not only Audentes programs but also it's proprietary manufacturing knowhow in gene therapy," Astellas CFO Naoki Okamura told a briefing in Tokyo. "Internal manufacturing capability is a great strength for companies with multiple programs under development."

Genetic drugs will become a fifth primary focus for Astellas, Okamura said, joining existing business lines in regenerative, immuno-oncology, immunotherapy, and neuro-muscular medicine.

The acquisition marks the second biggest on record for Astellas after its 2010 purchase of OSI Pharmaceuticals Inc for$3.8 billion, according to Refinitiv data. Astellas expects the deal, which is subject to regulatory approval including U.S. antitrust clearance, to close in the first quarter of 2020.

Audentes' investigational drug, AT132, is being developed to treat a rare genetic neuromuscular disorder which results in extreme muscle weakness, respiratory failure and in some cases early death.

Astellas said the companies plan to seek FDA approval for AT312 in mid-2020. The drug has shown promising results in the treatment of X-linked myotubular myopathy (XLMTM) seen mainly in male infants, it said.

Only about 40 boys are born in the United States with the condition each year, so that would yield just $80 million in revenue, said Jefferies analyst Stephen Barker, assuming a maximum price tag for the treatment.

"The $3 billion acquisition price is therefore more likely to be mainly predicated on the firm's technology platform and manufacturing capabilities," Barker wrote in a note.

The deal also marks the latest consolidation in the industry which saw Japan's Takeda Pharmaceutical Co Ltd acquire Britain's Shire for $59 billion.

Shares in Astellas fell 1.1% on Tuesday in Tokyo, underperforming a 0.6% decline in the broader market <.N225>.

The stock's decline was "the natural reaction", said Credit Suisse analyst Fumiyoshi Sakai.

"This is a difficult deal to digest because it deals with gene therapy," Sakai said. "They have to be very square with the investment community about what they're buying."

Morgan Stanley & Co LLC, is Astellas' financial adviser while Covington & Burling LLP is the company's legal counsel.

Centerview Partners LLC is acting as financial adviser to Audentes and Fenwick & West LLP is its legal counsel.

(Reporting by Dania Nadeem in Bengaluru and Rocky Swift in Tokyo; Editing by Anil D'Silva, Edwina Gibbs and Muralikumar Anantharaman)

Stocks mentioned in the article
ChangeLast1st jan.
ASTELLAS PHARMA INC. -1.22% 1858 End-of-day quote.34.54%
AUDENTES THERAPEUTICS, INC. -0.12% 59.44 Delayed Quote.178.80%
HUDSON'S BAY COMPANY -3.99% 8.43 Delayed Quote.15.64%
TAKEDA PHARMACEUTICAL COMPANY LIMITED -1.15% 4371 End-of-day quote.20.75%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ASTELLAS PHARMA INC.
12/10ASTELLAS PHARMA : Announces Key Leadership Promotions in Human Resources, Legal
AQ
12/04Nikkei bounces back on trade deal hopes, steelmakers shine
RE
12/03Japanese shares slip on concerns of longer trade war
RE
12/03Health Care Losses Limited As Investors Seek Less Trade-Sensitive Areas -- He..
DJ
12/03Wall Street falls as trade hopes wane
RE
12/03ASTELLAS PHARMA : Presents New Data on XOSPATA in FLT3 Mutation-Positive Relapse..
AQ
12/03Seattle Genetics and Astellas Announce Clinical Trial Collaboration with Merc..
AQ
12/03Japan's Astellas to buy Audentes for $3 billion in high-priced gene therapy b..
RE
12/03Nikkei slips on fresh global trade concerns, weak U.S. data
RE
12/02NEWS HIGHLIGHTS : Top Company News of the Day
DJ
More news
Financials (JPY)
Sales 2020 1 263 B
EBIT 2020 258 B
Net income 2020 200 B
Finance 2020 429 B
Yield 2020 2,21%
P/E ratio 2020 17,2x
P/E ratio 2021 16,7x
EV / Sales2020 2,42x
EV / Sales2021 2,32x
Capitalization 3 480 B
Technical analysis trends ASTELLAS PHARMA INC.
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 12
Average target price 2 070,00  JPY
Last Close Price 1 858,00  JPY
Spread / Highest target 45,3%
Spread / Average Target 11,4%
Spread / Lowest Target -32,7%
EPS Revisions
Managers
NameTitle
Kenji Yasukawa President, CEO & Representative Director
Yoshihiko Hatanaka Chairman
Chikashi Takeda Senior Executive Officer & Head-Finance
Naoki Okamura Representative Director & Vice President
Tomokazu Fujisawa Director
Sector and Competitors
1st jan.Capitalization (M$)
ASTELLAS PHARMA INC.34.54%32 028
JOHNSON & JOHNSON8.48%371 041
ROCHE HOLDING AG24.45%262 849
MERCK AND COMPANY16.61%226 542
PFIZER-12.44%211 514
NOVARTIS22.84%209 840