AstraZeneca to pay up to $1.2 billion for Pearl
pharmafile | June 10, 2013 | News story | Research and Development, Sales and Marketing | AstraZeneca, COPD, pearl therapeutics
AstraZeneca is betting big on lung disease specialist Pearl Therapeutics as it looks to spend $1.2 billion to acquire the firm.
Pearl Therapeutics, a privately-held company based in Redwood City, California, is focused on the development of inhaled small-molecule therapeutics for respiratory disease.
The acquisition will give AZ access to a potential new treatment for COPD currently in late-stage development, and inhaler and formulation technology that provides a platform for future combination products.
AstraZeneca will acquire all of Pearl’s shares for $560 million, as well as an extra $450 million if specified development and regulatory milestones are achieved.
Sales-related payments of up to a further $140 million will also be payable if certain sales thresholds are exceeded – this means AZ could spend as much as $1.2 billion for the firm.
The deal is subject to customary regulatory approvals, but both companies expect the acquisition to be completed in the third quarter of 2013.
By taking on Pearl’s lead COPD drug, AZ hopes this will complement its own respiratory portfolio, which includes COPD and asthma treatment Symbicort, which brought in $3.2 billion for the firm last year.
It also has the asthma treatment Pulmicort which brought in just under $900 million, and the expertise of its biologics arm MedImmune, which specialises in inflammation and respiratory disorders.
In April last year AZ signed a respiratory pact with US biotech firm Amgen, paying $50 million up front and sharing the cost of a number of Amgen’s medicines.
In January it also signed a research deal with Swedish pharma company Orexo, again centred on the development of respiratory disease treatments.
The firm has had a torrid time in recent years with a number of late-stage failures for key drugs, leading eventually to the sacking of its previous chief executive David Brennan.
AZ said at the beginning of the year that it was looking to shore up its weakened pipeline with new deals, and this is so far the biggest under the tenure of its new boss Pascal Soriot.
Speaking about the deal, Soriot said: “Chronic obstructive pulmonary disease continues to increase worldwide and there is a growing need for the next generation of inhaled combination products.
“Pearl’s novel formulation technology, together with its development products and specialist expertise are a great complement to AstraZeneca’s long-established capabilities in respiratory disease, one of our core therapy areas.
“Combined with our on-market portfolio, including Symbicort, and our strong pipeline, the agreement will enable us to offer further distinctive treatment options across the full spectrum of COPD and asthma to patients, physicians and payers.”
Kevin Ferro, chairman of the board of Pearl Therapeutics, added: “We believe AstraZeneca will provide significant value in supporting the further development and registration of our lead product, PT003, and in leveraging our technology platform to realise future products including a triple agent therapy for respiratory disease.”
Ben Adams
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