Otsuka Pharmaceutical Announces Acquisition of Jnana Therapeutics
Overview
Otsuka Pharmaceutical Co., Ltd. (Otsuka) and Jnana Therapeutics Inc. (Jnana) have announced a definitive merger agreement. Under this agreement, Otsuka will acquire Jnana through its subsidiary, Otsuka America, Inc. (OAI), making Jnana a wholly-owned subsidiary. The acquisition, valued at USD $800 million, is expected to close in the third quarter of fiscal 2024, pending customary closing conditions. Additional payments of up to USD $325 million may be made based on development and regulatory milestones.
Jnana's Chemoproteomics Technology
Jnana's RAPID platform, a next-generation chemoproteomics technology, enables the discovery of medicines for challenging-to-drug targets by leveraging high-throughput, binding-based screening to identify small molecules with diverse pharmacologies.
This platform has successfully produced first-in-class compounds for targets like solute carriers, transcription factors, and signaling scaffold proteins.
Jnana’s approach complements that of Astex Pharmaceuticals, an Otsuka subsidiary based in the UK.
Jnana focuses on PKU, a rare metabolic disorder, and autoimmune diseases.
Its lead candidate, JNT-517, an allosteric small molecule inhibitor of SLC6A19, has shown promise as a first-in-class oral treatment for PKU in Phase 1b/2 studies.
Jnana is also exploring treatments for autoimmune diseases targeting IRF3, a key transcription factor for interferon production.
Otsuka’s acquisition aligns with its strategic goal to expand its rare disease and specialty drug portfolio, complementing its work with Visterra, which advances antibody drug technology in the autoimmune field.
Jnana’s Operations
Jnana will continue its R&D operations as a wholly-owned subsidiary in Boston post-acquisition.
The transaction involves merging a special purpose company, established by OAI, into Jnana.
Shareholders of Jnana will receive cash consideration.
Completion is subject to Jnana shareholder approval and U.S. antitrust clearance, with an expected close in the third quarter of 2024.
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