Astellas Pharma has signed an agreement for the acquisition of the complete outstanding common stock and equity interests of biopharmaceutical company Propella Therapeutics in a $175m deal.

Propella leverages a platform that merges lymphatic targeting with medicinal chemistry to develop oncology therapies.

As part of the merger, being executed through a US subsidiary, Astellas will acquire Propella’s lead product candidate, PRL-02 (abiraterone decanoate), for treating prostate cancer. 

An androgen biosynthesis inhibitor, PRL-02 is an abiraterone prodrug.

This product candidate is being analysed in a Phase I clinical trial and will enter Phase IIa trials in 2024.

Astellas plans to fund the acquisition using cash on hand.

The merger is anticipated to conclude by 31 March 2024.

Astellas president and CEO Naoki Okamura stated: “The acquisition fits with Astellas’ strategy to provide patients with therapeutic options for diseases with high unmet medical needs. 

“Propella has a promising programme, PRL-02, targeting prostate cancer. 

“We believe that the synergy with Astellas’ global development and commercialisation capabilities in the cancer and urology fields will accelerate the development of PRL-02 and deliver new value to patients with prostate cancer.”

In September 2023, Astellas announced the submission of a planning application to establish a new drug manufacturing unit in Tralee, County Kerry, Ireland.

The company plans to invest €330m in the facility.