Otsuka buys Astex Pharmaceuticals (NASDAQ:ASTX) for US$ 886 million

Astex Pharmaceuticals is an oncology drug discovery company based on the Pyramid drug discovery platform in Cambridge (UK)

Otsuka buys Astex in a tender offer for US$ 886 million

Otsuka buys Astex Pharmaceuticals (formally Astex Therapeutics, UK). Astex Therapeutics is a oncology drug discovery company based in Cambridge, England, and at the time of acquisition was listed on NASDAQ (ASTX).

The acquisition was done through a tender offer at an offer price of US$ 8.50 per share, a 48% premium on the stock price, starting on 13 September 2013, and completed on 10 October 2013, followed by a merger on 11 October 2013.

Total acquisition capital was US$ 886 million.

Astex Therapeutics

Astex Therapeutics is a oncology drug discovery company, based on a proprietary fragment based “drug discovery platform” Pyramid.

Astex Therapeutics was founded in 1999 in Cambridge, England, by

On 7 April 2011, Astex was acquired by SuperGen (NASDAQ:SUPG). The surviving company was Astex (NASDAQ:ASTX). This acquisition closed on July 2011.

Astex business model based on up-front technology access fees, success fees for milestones and product royalties to fund internal R&D

Astex Therapeutics has developed a business model where revenues offset cash burn. Fee income provides funding for Astex R&D: Astex does not work on a fee-for-service basis, but achieves substantial upfront cash technology access fees, and agrees on success fees based on achieved development milestones, and royalties on product sales.

Examples of major agreements under this business model:

  • 6 December 2005: Novartis, upfront access fee and + deferred equity payments of US$ 25 million, potential of up to US$ 520 in fees. World-wide license for cell-cycle inhibitor AT9311, option to license cell cycle inhibitor AT7519
  • 2008: Janssen, US$ 37 million upfront access fee and equity and initial research funding
  • 2009: GSK, US$ 33 million upfront fee and equity

Otsuka Pharmaceutical Co., Ltd. (大塚製薬株式会社)

Otsuka Pharmaceutical Co., Ltd. (大塚製薬株式会社) is a Japanese pharmaceutical company, founded on 10 August 1964, traded on the Tokyo Stock Exchange (TYO:4578).

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