The potential purchase by the Japanese conglomerate could secure access to Calliditas’ IgA nephropathy therapy Tarpeyo, which won the FDA’s full approval in December 2023.
Japanese conglomerate Asahi Kasei announced Tuesday that it has made a SEK 11.1 billion ($1.1 billion) offer to purchase the Swedish pharmaceutical company Calliditas Therapeutics, with its board of directors recommending that the offer be accepted.
Asahi Kasei said the reason for the offer centers on the conglomerate’s drive to expand its healthcare business globally, especially in the areas of immunology and transplantation, as well as growing its pharma business in the short term. The company has also been on the lookout for acquisition targets that can “contribute to its pharmaceutical growth strategy.” Asahi Kasei’s past moves include the DKK 8.8 billion ($1.28 billion) buy of Veloxis Pharmaceuticals in 2019.
The proposed deal comes as Calliditas’ drug Tarpeyo was fully approved by the FDA in December 2023 to treat adults with primary immunoglobulin A nephropathy (IgAN), becoming the only authorized treatment that can reduce kidney function loss.
The drug has also been a solid earner for Calliditas pulling in SEK 1.075 billion ($102 million) in 2023 and SEK 278.3 million ($26.4 million) in the first quarter 2024. Calliditas expects Tarpeyo sales to be in the range of $150 million to $180 million in sales by the end of 2024.
Asahi Kaisei said that Tarpeyo is “highly complementary” to its “existing geographic and therapeutics areas.” The Calliditas deal also gives Asahi Kasei an increased presence in the U.S. market by expanding its in-house sales structure and a European presence for its R&D activities. With the deal, Asahi Kasei also plans to broaden its in-licensing and new drug development pipeline.
“Calliditas has infrastructure in a number of markets where Asahi Kasei currently has limited resources, including Sweden,” Asahi Kasei said in Tuesday’s statement.
In a statement, the Calliditas board recommended that shareholders accept the public tender offer by Asahi Kasei, arguing it will not only benefit the company by being part of a larger company but also have the potential to accelerate its “revenue growth trajectory” and spur pipeline development. On Tuesday, the news sent Calliditas’s stock price skyrocketing 75% in premarket trading.
At the same time, Asahi Kasei said that the deal could involve changes to the organization, operations and employees of Calliditas and that a “careful review” should be undertaken. The acceptance period for the offer is expected to commence on or around July 18, 2024, and expire on or around Aug. 30.
Tyler Patchen is a staff writer at BioSpace. You can reach him at tyler.patchen@biospace.com. Follow him on LinkedIn.
