Astellas Expands Oncology Portfolio with Ganymed Buy

Oct. 28, 2016

Tokyo-based Astellas Pharma Inc. will acquire Ganymed Pharmaceuticals AG, a biopharmaceutical company located in Mainz, Germany, which focuses on the development of antibodies against cancer.

Under the agreement, Astellas will pay $461 million to acquire 100% of the equity in Ganymed. In addition, Ganymed's shareholders will become eligible to receive up to $940 million in further contingent payments based on progress in the development of IMAB362, Ganymed's most advanced clinical program. Upon completion of the transaction, Ganymed would become a wholly owned subsidiary of Astellas. The closing of the transaction is subject to customary regulatory approvals, and is expected to be finalized in the next several weeks.

"Oncology is one of our focus therapeutic areas and key drivers for our growth. The acquisition of Ganymed will enable Astellas to further expand our oncology presence by adding a late-stage antibody asset with the potential to establish a new pillar following XTANDI," said Yoshihiko Hatanaka, president and CEO, Astellas. "We aim to deliver a potential new therapeutic option to cancer patients who currently have limited treatment options available to them."

Astellas is still reviewing the impact of this transaction on its financial forecasts for the fiscal year ending March 31, 2017.