Asahi Kasei Pharma Acquires Veloxis Pharmaceuticals for $1.3 Billion to Expand Kidney Transplant Immunosuppression Portfolio

On November 27, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Asahi Kasei Pharma announced the acquisition of Veloxis Pharmaceuticals for $1.3 billion. The major shareholders of both companies, Novo Holdings and Lundbeckfond Invest, have already signed the acquisition offer.

Veloxis (Nasdaq Copenhagen: VELO), established in June 2002 and headquartered in Hørsholm, Denmark, is a biotechnology and pharmaceutical company. The company is dedicated to the development and commercialization of the immunosuppressant Envarsus XR (LCP-Tacro) to help kidney transplant patients prevent organ rejection. Veloxis is a subsidiary of H. Lundbeck A/S and currently operates a wholly-owned subsidiary in New Jersey, United States.

Envarsus XR is an immunosuppressant developed based on the active pharmaceutical ingredient tacrolimus, requiring only once-daily dosing. Tacrolimus, also known as FK506, is a fermentation product isolated from Streptomyces species and has become a first-line agent for liver and kidney transplantation. This potent novel immunosuppressant inhibits the release of interleukin-2 (IL-2), thereby comprehensively suppressing T-lymphocyte activity.

Veloxis leveraged its proprietary MeltDose technology to reformulate Envarsus XR, enhancing drug bioavailability and enabling sustained release. The efficacy of the MeltDose technology had previously been validated in clinical studies of Fenoglide, a medication for the treatment of hyperlipidemia.

In April 2013, Veloxis submitted a Marketing Authorization Application (MAA) for Envarsus XR to the European Medicines Agency (EMA), based on data from 25 clinical development programs. In December of the same year, the company filed a New Drug Application (NDA) with the U.S. Food and Drug Administration (FDA), providing a new anti-rejection therapy for kidney transplant patients in Europe and the United States. In two Phase III clinical trials, the drug demonstrated superior efficacy compared to tacrolimus. Additionally, Envarsus XR was granted orphan drug designation by the FDA for the prevention of kidney transplant rejection.

Asahi Kasei Pharma was established in 2003 and is headquartered in Tokyo, Japan. As a pharmaceutical subsidiary of the Asahi Kasei Group, the company focuses on the pharmaceutical sector, developing innovative drugs for various diseases with the aim of becoming a distinctive global pharmaceutical company. Additionally, Asahi Kasei Pharma develops products such as diagnostic agents, providing support to the medical diagnostics field.

Asahi Kasei Pharma has been expanding its pharmaceutical market globally for many years and seeking continuous growth in the field of drug development. Hideki Kobori, President of Asahi Kasei, stated that the company plans to expand its scale and business market through several new strategic acquisitions, providing innovative therapeutic drugs to patients worldwide.

Christoffer Søderberg, Senior Partner at Novo Holdings, stated, “Asahi Kasei’s acquisition of Veloxis marks another step forward in its commitment to innovation in the life sciences. The development and commercialization of Envarsus XR will benefit tens of thousands of organ transplant patients worldwide. We are proud of the achievements made by the Veloxis team and delighted that they will continue to grow together with Asahi Kasei.”

(Compiled by Xu Xiaoxue)