TOKYO - Astellas Pharma Inc. (TSE: 4503, President and CEO: Kenji Yasukawa, Ph.D., 'Astellas') announced today that it has completed the acquisition of Iota Biosciences, Inc. ('iota'), a start-up company focused on the bioelectronics field, located in Berkeley, California, and iota has become a wholly owned subsidiary of Astellas as of U.S. Pacific Time October 29, 2020.
Under the Merger Agreement executed between Astellas and iota shareholders, Astellas paid approximately US$127.5 million to acquire all of the outstanding equity in iota that was not previously held by Astellas (Astellas through a U.S. subsidiary, was an investor in iota through its previous Series A Preferred Stock offering). In addition, iota's former shareholders (other than Astellas) will be eligible to receive additional payments of up to a total of approximately US$176.5 million upon achievement of predetermined milestones by iota within certain timeframes after completion of the transaction.
Astellas is also committing to spend a total of US$125 million over the next five years to fuel iota's aggressive expansion.
This acquisition is expected to accelerate Astellas' Rx+ business not only by expediting the Rx+ projects previously covered under the Research and Development Agreement signed between the parties in August 2019 but also by allowing exploration of other applications of iota's unique bioelectronics technology for new target diseases and developing new technologies.
At this point, Astellas intends to maintain the organization in California and to retain the iota Biosciences name.
A business that leverages the expertise and knowledge of Astellas, which has been cultivated through its prescription drug (Rx) business, integrates innovative medical technology with cutting-edge technology in different fields, contributes to patients through Patient Journey (overall medical care, including diagnostic, preventive, therapeutic, and prognostic care), and creates new revenue streams separate from Astellas' core Rx products.
Astellas Pharma Inc. is a pharmaceutical company conducting business in more than 70 countries around the world. We are promoting the Focus Area Approach that is designed to identify opportunities for the continuous creation of new drugs to address diseases with high unmet medical needs by focusing on Biology and Modality. Furthermore, we are also looking beyond our foundational Rx focus to create Rx+ healthcare solutions that combine our expertise and knowledge with cutting-edge technology in different fields of external partners. Through these efforts, Astellas stands on the forefront of healthcare change to turn innovative science into value for patients.
Cautionary Notes Astellas
In this press release, statements made with respect to current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Astellas. These statements are based on management's current assumptions and beliefs in light of the information currently available to it and involve known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to: (i) changes in general economic conditions and in laws and regulations, relating to pharmaceutical markets, (ii) currency exchange rate fluctuations, (iii) delays in new product launches, (iv) the inability of Astellas to market existing and new products effectively, (v) the inability of Astellas to continue to effectively research and develop products accepted by customers in highly competitive markets, and (vi) infringements of Astellas' intellectual property rights by third parties. Information about pharmaceutical products (including products currently in development) which is included in this press release is not intended to constitute an advertisement or medical advice.