AstraZeneca to acquire Pearl Therapeutics to strengthen drug pipeline

10th Jun 2013 07:14

FTSE 100-listed global pharmaceuticals group AstraZeneca has entered into a definitive agreement to acquire Redwood City-based Pearl Therapeutics, an update issued by the group has shown. Pearl Therapeutics is a privately held company focused on the development of inhaled small-molecule therapeutics for respiratory disease. AstraZeneca said that the acquisition would give it access to a potential new treatment for chronic obstructive pulmonary disease (COPD), currently in late-stage development, and inhaler and formulation technology that would provide a platform for future combination products. Under the terms of the agreement, AstraZeneca will acquire 100% of Pearl's shares for an initial consideration of $560m payable on completion. In addition, the group said that deferred consideration of up to $450m would become payable if specified development and regulatory milestones in respect of any triple combination therapies and selected future products that AstraZeneca developed using Pearl's technology platform were achieved. Sales-related payments of up to an additional $140m would be payable if pre-agreed cumulative sales thresholds were exceeded resulting in a total potential acquisition cost of up to $1.15bn, AstraZeneca added. 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. He added: 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."MF