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AstraZeneca to buy Pearl Therapeutics for $560 million

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Staff writer ▼ | June 11, 2013
AstraZeneca has entered into a definitive agreement to acquire Pearl Therapeutics, a privately held company, for $560 million plus $450 million if everything goes well.
AstraZeneca Pearl Therapeutics
AstraZeneca Pearl TherapeuticsAstraZeneca has entered into a definitive agreement to acquire Pearl Therapeutics, a privately held company, for $560 million plus $450 million if everything goes well.


Pearl Therapeutics, a company based in Redwood City, California, is focused on the development of inhaled small-molecule therapeutics for respiratory disease.

The acquisition will give AstraZeneca access to a potential new treatment for chronic obstructive pulmonary disease (COPD), currently in late-stage development, and inhaler and formulation technology that provides a platform for future combination products.

Pearl's lead product, PT003, is a fixed dose combination of formoterol fumarate, a long-acting beta-2-agonist (LABA) and glycopyrrolate, a long-acting muscarinic antagonist (LAMA). LABA/LAMA combinations are expected to become an important new class of treatment for COPD.

AstraZeneca will acquire 100% of Pearl's shares for initial consideration of $560 million payable on completion. In addition, deferred consideration of up to $450 million becomes payable if specified development and regulatory milestones in respect of any triple combination therapies and selected future products that AstraZeneca develops using Pearl's technology platform are achieved.

Sales-related payments of up to a further $140 million are payable if pre-agreed cumulative sales thresholds are exceeded resulting in a total potential acquisition cost of up to $1.15 billion. The proposed transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2013.

"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," said Pascal Soriot, chief executive officer of AstraZeneca.

"We have been impressed with AstraZeneca's expertise, focus and speed of execution and are delighted to be joining the group, a global leader in respiratory disease, as we believe that Pearl will be an excellent fit for its respiratory portfolio," said Kevin Ferro, chairman of Pearl Therapeutics and CEO of Vatera Healthcare Partners, Pearl's lead investor.

The acquisition of Pearl Therapeutics has no impact on AstraZeneca's financial guidance for 2013.


 

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