Daiichi Sankyo to acquire U3 Pharma for $233.5 million

TOKYO and LONDON Daiichi Sankyo has agreed to purchase the German biotech company U3 Pharma for $233.5 million, in an effort to boost its cancer drug pipeline, according to Reuters. The company said that the acquisition would give it a variety of early-stage fully human antibody programs with potential for treating breast, lung, colorectal and other cancers.

“One of our goals for Daiichi Sankyo is to increase our presence in novel therapeutics in the oncology arena,” Takashi Shoda, the company's president and chief executive officer, said in a statement. “Our acquisition of U3 Pharma is an ideal strategic fit.”

The most advanced drug in U3’s pipeline is an anti-cancer product, AMG 888, which is being co-developed with Amgen and is due to enter clinical development this year. This goes well with Daiichi’s cancer drug CS-1008, which is in mid-stage phase II tests for malignant neoplasms.

This deal is now becoming part of a trend of Japanese pharmaceutical companies purchasing biotech companies to bolster their own pipeline for the emerging cancer drug market. Takeda Pharmaceuticals last month bought the biotech company Millennium Pharmaceuticals for $8.8 billion, while Eisai spent $3.9 billion to acquire MGI Pharma in December.