Otsuka Pharma Acquires Jnana and PKU Drug in $11 Billion Deal

Jnana Therapeutics Receives $800 Million Upfront, Potential for $325 Million in Additional Payments

Tokyo, Japan — WEB Otsuka Pharmaceutical Co., Ltd., a leading Japanese pharmaceutical company, announced on Thursday that it has agreed to acquire Jnana Therapeutics Inc., a privately held biotechnology company based in Cambridge, Massachusetts, and PKU Therapeutics LLC, a wholly owned subsidiary of Jnana Therapeutics, for approximately $11 billion.

The acquisition includes an upfront payment of $800 million to the shareholders of Jnana upon completion of the acquisition. The deal also includes potential for as much as $325 million in additional payments tied to the successful development and commercialization of Jnana's pipeline candidates.

Jnana Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel therapies for the treatment of neurodegenerative diseases and other serious conditions. The company's pipeline includes several promising drug candidates, including JNT-459, a potential treatment for amyotrophic lateral sclerosis (ALS), and JNT-721, a potential treatment for phenylketonuria (PKU).

Otsuka Pharmaceutical is a global pharmaceutical company with a strong focus on research and development. The company's portfolio includes several blockbuster drugs, including Abilify, a treatment for schizophrenia and bipolar disorder, and Latuda, a treatment for depression.

The acquisition of Jnana Therapeutics and PKU Therapeutics is expected to strengthen Otsuka Pharmaceutical's pipeline in the areas of neurodegenerative diseases and rare diseases. The deal is also expected to accelerate the development and commercialization of Jnana's pipeline candidates.

The transaction is expected to close in the second half of 2023, subject to customary closing conditions, including the receipt of regulatory approvals.