Otsuka America, a subsidiary of Otsuka Pharmaceutical, announced the completion of its acquisition of Transcend Therapeutics, a clinical-stage biotechnology company focused on developing rapid-acting treatments for neuropsychiatric disorders.
Under the terms of the agreement, Otsuka paid $700 million to Transcend shareholders at closing and could provide up to an additional $525 million in contingent payments tied to future sales milestones for assets currently under development.
Following the transaction, Transcend will operate as a wholly owned subsidiary of Otsuka America.
The acquisition expands Otsuka’s efforts to develop next-generation therapies for serious mental illnesses and strengthens its presence in central nervous system disorders.
Transcend’s lead investigational candidate, TSND-201 (methylone), is being developed as a rapid-acting neuroplastogen for the treatment of post-traumatic stress disorder (PTSD). More than 13 million people in the United States are estimated to be affected by PTSD annually, and no new treatments have been approved for the condition in more than 25 years.
TSND-201 generated favorable results in the Phase 2 IMPACT-1 clinical trial, and a Phase 3 study is currently underway. The therapy has received Breakthrough Therapy designation from the U.S. Food and Drug Administration and was selected for the priority voucher program aimed at accelerating access to psychedelic treatments.
The transaction represents the latest investment by Otsuka in advancing innovative therapies for serious neuropsychiatric conditions and is intended to accelerate the development and commercialization of new treatment options for patients with significant unmet needs.
Transcend was founded in 2021 and is headquartered in New York City. The company focuses on developing rapid-acting therapies for neuropsychiatric diseases. Otsuka Pharmaceutical is a global healthcare company with businesses spanning pharmaceuticals and nutraceuticals.
KEY QUOTES:
“This marks an important step forward in our continued commitment to patients and their families in need of more treatment options for serious mental illness. By combining Otsuka’s decades of expertise in central nervous system disorders with Transcend’s pioneering approach, we are well positioned to accelerate the development of new treatment options for those who continue to face significant unmet needs.”
Tarek Rabah, President And CEO, Otsuka North America Pharmaceutical Business
“Joining Otsuka marks an exciting new chapter for Transcend and the patients we aim to serve. Otsuka’s scientific rigor, global scale, and long-standing commitment to advancing mental health innovation will help accelerate our efforts to develop transformative therapies and expand access to new treatment options for the people who need it most.”
Blake Mandell, CEO, Transcend Therapeutics
