Sosei Acquires Heptares Therapeutics for up to USD 400 Million

Sosei Group Corporation, a leading Japanese biopharmaceutical company with operations in Japan and the UK, has acquired Heptares Therapeutics Ltd, a clinical-stage private UK-based biotechnology company focused on creating novel medicines targeting G protein-coupled receptors (“GPCRs”).

The combination will create a leading global biopharmaceutical group with

• sustainable, proven and highly successful drug discovery and clinical development capabilities for generating innovative medicines
• a broad and balanced pipeline with strong growth prospects, including products with blockbuster potential;
• access to global pharmaceutical markets
• regulatory expertise across the EU, US and Japan
• a significant cash balance.

These strengths will enable the group to sustain its pipeline and revenue stream on a long-term basis. Heptares will become a wholly owned subsidiary of the group, with its existing R&D operations continuing in the UK.

Shinichi Tamura, Chairman and CEO of Sosei Group Corporation said: “Today is an historic day for Sosei. Heptares is based on truly world-class science and its drug discovery and development capabilities will contribute to a sustainable stream of new products for the group. While core to our future, an independent subsidiary structure will ensure Heptares is able to maintain the culture and business model that has been the foundation of its success so far.”

Dr Malcolm Weir, CEO of Heptares, added: “This is an excellent next step for Heptares which maintains our integrity and purpose within a group that has a clear and coherent vision. It is a great example of the translation of ground-breaking UK academic science into economic and potential therapeutic value and secures significant investment into our technology platform and clinical pipeline well into the future. We look forward to working within the group to advance our programmes, both partnered and in-house, and, over time, to providing much needed new treatment options for patients.”

The group has been exploring strategic opportunities that can both build on and go beyond the secured revenue stream in milestones and royalties derived from the two COPD products (Ultibro Breezhaler and Seebri Breezhaler) marketed by its partner Novartis.

The acquisition of Heptares, with its exciting clinical and preclinical pipeline of potentially transformative new medicines targeting serious diseases with major unmet need (e.g. Alzheimer’s disease, ADHD, metabolic disease, schizophrenia, migraine, and others), and its unique, differentiated and high potential StaR drug discovery platform, significantly fulfils this goal and further represents a major step towards the group’s strategic vision of becoming a significant global biopharmaceutical company arising from Japan.

In addition to its pipeline and platform, Heptares has established collaborative partnerships with a number of the world’s leading pharmaceutical companies that provide the company with a prospective stream of revenue through milestones and royalties. Consolidation of these revenues will make a significant contribution to the group’s financial position. The combined entity expects continued strong growth driven by revenues from new clinical-stage alliances and platform partnerships.