Astellas To Buy Germany-based Ganymed Pharmceuticals, Boost Oncology Pipeline

(RTTNews) - Astellas Pharma Inc. (ALPMY, ALPMY) has agreed to acquire Germany-based Ganymed Pharmaceuticals AG, the two companies said Friday.

Astellas and Ganymed's shareholders have entered into an agreement for Astellas to acquire Ganymed.

Ganymed, located in Mainz, Germany, is a privately-held biopharmaceutical company that focuses on the development of antibodies against cancer. Astellas Pharma noted that the transaction would enable it to continue to build upon its oncology franchise as a platform for sustainable growth.

Under the agreement, Astellas will pay 422 million euros to acquire 100 percent of the equity in Ganymed. In addition, Ganymed's shareholders will become eligible to receive up to 860 million euros in further contingent payments based on progress in the development of IMAB362, Ganymed's most advanced clinical program.

Upon completion of the transaction, Ganymed would become a wholly owned subsidiary of Astellas. The closing of the transaction is expected to be finalized in the next several weeks.

Yoshihiko Hatanaka, President and CEO, Astellas said, "The acquisition of Ganymed will enable Astellas to further expand our oncology presence by adding a late-stage antibody asset with the potential to establish a new pillar following XTANDI. We aim to deliver a potential new therapeutic option to cancer patients who currently have limited treatment options available to them."

Astellas said it is still reviewing the impact of this transaction on its financial forecasts for the fiscal year ending March 31, 2017.