On November 15, 2023 Astellas Pharma Inc. (TSE: 4503, President and CEO: Naoki Okamura, "Astellas") and Propella Therapeutics, Inc. (President and CEO: William Moore, "Propella") reported that Astellas, through a U.S. subsidiary, and Propella have entered into a merger agreement pursuant to which Astellas will acquire Propella (Press release, Astellas, NOV 15, 2023, View Source [SID1234637696]). Propella is a privately held biopharmaceutical company that has leveraged a wholly owned proprietary platform that combines medicinal chemistry with lymphatic targeting to create new oncology drugs.
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Through the acquisition of Propella, Astellas will acquire PRL-02 (abiraterone decanoate), a next-generation androgen biosynthesis inhibitor being developed by Propella to treat prostate cancer. PRL-02 is a novel, long-acting prodrug* of abiraterone that, following intramuscular injection, is expected to achieve high concentrations in target tissues where the active moiety, abiraterone, is continuously released. PRL-02 may provide improved efficacy and safety compared to existing treatment options by high CYP17 lyase inhibition selectivity. PRL-02 is currently in a Phase 1 clinical trial and is expected to enter Phase 2a clinical trials in 2024.
Naoki Okamura, President and CEO, Astellas
"The acquisition fits with Astellas’ strategy to provide patients with therapeutic options for diseases with high unmet medical needs. Propella has a promising program, PRL-02, targeting prostate cancer. We believe that the synergy with Astellas’ global development and commercialization capabilities in the cancer and urology fields will accelerate the development of PRL-02 and deliver new VALUE to patients with prostate cancer."
William Moore, President and CEO, Propella
"Propella has focused on the research and development of proprietary, highly selective inhibitors that precisely block the synthesis of androgens, the main driver of prostate cancer, without significant changes in other steroids that are known to reduce clinical activity and safety. We are gratified that Astellas recognizes and values PRL-02’s potential as a best-in-class therapeutic for the treatment of men with prostate cancer. We are delighted that Astellas has chosen PRL-02 for further development and we are committed to supporting Astellas’ plans to accelerate PRL-02 development to improve treatment options for prostate cancer patients globally."
Under the agreement, Astellas will pay approximately US$175million to acquire all of the outstanding common stock and equity interests in Propella. Subject to customary closing conditions, the transaction is expected to occur during Astellas’ fiscal year 2023 (which ends on March 31, 2024).
The impact of this transaction on Astellas’ financial results in the fiscal year ending March 31, 2024, will be limited.
Overview of Acquisition
Stock acquirer: Astellas US Holding, Inc.
Major shareholders of Propella: TPC- API LLC, Employees, etc.
(including stock options)
Consideration: Cash (using cash on hand)
Financial terms: Astellas will pay approximately US$175million to acquire all of the outstanding common stock and equity interests in Propella
Estimated Date of Closing: Astellas’ fiscal year 2023 (which ends on March 31, 2024)
Overview of Propella
Company: Propella Therapeutics, Inc.
Address: Pittsboro, North Carolina, US
Representative’s Title and Name: President & CEO, William Moore
Year of Establishment: 2020
Employees: 5 employees (as of end of October 2023)
Business Relationship: There is no business relationship between Astellas and Propella.
Stifel, Nicolaus & Company, Incorporated is acting as exclusive financial advisor and Cooley LLP provided legal advice to Propella on this transaction.
* Prodrug: drugs with increased bioavailability by utilizing metabolic reactions in the body