Following the news that Japan-based Astellas Pharma entered into a definitive agreement to acquire US-based biopharmaceutical company Iveric Bio for $5.9 billion to create a world class ophthalmology entity;

Prashant Khadayate, Pharma Analyst at GlobalData, a leading data and analytics company, offers his view:

“Astellas mentions blindness and regeneration as one of the five focus areas for research and development. Currently, Astellas pipeline includes cell therapy ASP7317 in Phase I development for geographic atrophy (GA) secondary to age-related macular degeneration, and Stargardt disease.

“With this acquisition, Astellas will quickly get access to Iveric Bio’s lead program, avacincaptad pegol. It is in the pre-registration stage in the US for GA and is expected to get approval in August 2023, becoming the second drug to get approval for this indication. Earlier, in February 2023, Apellis Pharmaceuticals Syfovre (pegcetacoplan) was approved in the US and became the first drug to get approval for GA.

“The acquisition seems to be the biggest acquisition in the history of Astellas. In June 2010, Astellas acquired OSI Pharma for $4 billion, which was earlier considered to be the biggest acquisition in the history of Astellas. Moreover, pure play ophthalmology acquisitions of this size are rare.

“According to GlobalData’s Pharma Intelligence Center, avacincaptad pegol is forecasted to achieve sales of $1.09 billion in 2028. Roche is the only other big player involved in the development of drugs for GA and its drug is currently in Phase II. Considering the overall competition, Astellas can leverage its commercial strength to easily achieve a leadership position in this area.

“Astellas also needs to bring new revenue streams as its key drug Xtandi (enzalutamide) for prostate cancer is approaching patent expiration in major markets starting in 2026. As per the latest annual results published in April 2023, Xtandi’s contribution is 44% of the overall global sales. Therefore, it is pertinent that new launches start contributing significantly to its overall sales to fill the gap following Xtandi’s patent expiration.”