AstraZeneca has acquired a California company in an effort to beef up its product line for respiratory uses.
The company announced it entered into a definitive agreement to acquire Pearl Therapeutics, a privately held company based in Redwood City Pearl has inhaled small-molecule therapeutics for respiratory disease in late-stage development.
AstraZeneca has administrative and manufacturing operations in Delaware.
The total cost of the deal could be as much as $1.15 billion for the company that is working up to build up its new drug portfolio as older pharmaceuticals go off patent.
AstraZeneca has a successful inhaled product Symbicort, but is working to move to next stage products with the molecules as drug companies compete in the market.
The acquisition will give AstraZeneca access to a potential new treatment for chronic obstructive pulmonary disease (COPD) and inhaler and formulation technology that provides a platform for future combination products. COPD is often linked to smoking.
A global Phase III program has been initiated and will test the improvement in lung function in individuals with moderate to severe COPD. The drug is delivered by inhalation via a pressurized metered dose inhaler using Pearl’s novel co-suspension formulation technology. The platform will allow AstraZeneca to explore combinations of existing and new technologies for drug delivery.
AstraZeneca will acquire all of Pearl’s shares for $560 million payable on completion. In addition, deferred consideration of up to $450 million becomes payable if specified development and regulatory milestones. Sales-related payments of up to a further $140 million are payable if pre-agreed sales thresholds are exceeded resulting in a total potential acquisition cost of up to $1.15 billion. The proposed transaction is expected to close in the third quarter of 2013.
Pascal Soriot, Chief Executive Officer of AstraZeneca, 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.”
