In a $466 million agreement, Sosei acquires the Japan and Korea subsidiaries of Idorsia

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Sosei Buys Idorsia’s Japan and Korea Units for $466 Million

Source – Sosei Heptares

Japan’s Sosei Group has successfully transformed into a commercial-stage pharmaceutical company by acquiring the rights to a marketed drug and a pipeline of experimental therapies from Swiss group Idorsia in selected Asia-Pacific markets.

The deal, valued at JPY 65 billion ($466 million), has now been completed. It involves the purchase of Idorsia’s Japanese and Korean subsidiaries for JPY 25 billion in cash and a JPY 40 billion loan facility. The deal also includes the rights to two drugs: Pivlaz (clazosentan), an endothelin receptor antagonist for cerebral vasospasm, and daridorexant, a dual orexin receptor antagonist for insomnia.

Pivlaz has already received marketing approval in Japan and achieved $53 million in sales during its debut year. Daridorexant is approved in other markets, including the US and Europe, and is scheduled for filing in Japan later this year. Sosei estimates that the combined sales of these two drugs could reach 35 billion yen at their peak.

The deal specifically excludes China but encompasses markets in Australia, Brunei, Cambodia, Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Thailand, Taiwan, and Vietnam.

Founded in 1990, Sosei has grown through various acquisitions, notably its takeover of Heptares in 2015, which provided expertise in G-protein coupled receptors (GPCR) and a rich source of new drug therapies.

The acquisition of Idorsia’s units aligns with Sosei’s strategic objective of becoming a fully-integrated biopharma company, with marketed drugs supported by an expanded pipeline of experimental therapies, including up to seven other candidates from Idorsia, and enhanced clinical development capabilities.

“The Japan pharmaceutical market, given its size, large aging population, and attractive high-quality clinical development and regulatory environment is the key next step for Sosei Heptares’ growth ambitions,” said Sosei Heptares’ chief executive, Chris Cargill.

Along with the drugmaker’s own therapies, it also wants to become “a development and commercialisation partner of choice in the territory,” he added, suggesting other bolt-on deals may be on the way.

The deal grants Sosei opt-in rights to Idorsia’s cenerimod, an S1P1 receptor modulator in Phase III for systemic lupus erythematosus, and lucerastat, a glucosylceramide synthase inhibitor in late-stage development in the US for Fabry disease. It also includes consideration for selatogrel, a P2Y12 antagonist for suspected acute myocardial infarction, as well as earlier-stage candidates for multiple sclerosis, type 1 diabetes, and immune-mediated disorders.

Sosei’s future objective by 2030 is to bring novel medicines to the global market through collaborations, establish a thriving commercial business in Japan, and maintain a broad, deep, and sustainable R&D pipeline.

With the completion of the deal, Sosei expects gross sales in Japan to increase from 6.6 billion yen in the last fiscal year to almost 13 billion yen, and it anticipates a shift from earnings before interest and taxes into profit.

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