Japan’s Otsuka Pharmaceutical said on Thursday it agreed to pay more than $1-billion to acquire Jnana Therapeutics as it looks to expand its drug pipeline and research base in the Boston area.
Otsuka is joining domestic rivals Ono Pharma, Takeda Pharmaceutical and Astellas Pharma in making big overseas deals to replenish their drug portfolios.
Otsuka will pay $800-million to Jnana shareholders along with up to $325-million in development and regulatory milestones, the Japanese company said in a statement. The deal is expected to be completed in the third quarter of this year.
Jnana is a clinical-stage biotechnology company with drug candidates for rare diseases and immune disorders. Its lead program, JNT-517, is a potential treatment for phenylketonuria (PKU), a rare genetic metabolic disease.
Otsuka focuses on psychiatric drugs, such as the antipsychotic Abilify, as well as cancer treatments. Its consumer goods division produces the Pocari Sweat electrolyte drink and the Calorie Mate energy bar for the domestic Japanese market.
The company produced the world’s first approved digitally connected drug, Abilify MyCite.