AstraZeneca has agreed to purchase California-based respiratory medication developer, Pearl Therapeutics, in a deal with a total potential cost of up to $1.15bn.
As per the definitive agreement signed between both the parties, AstraZeneca will acquire Pearl's shares for initial consideration of $560m that is payable on completion of the transaction.
Deferred consideration of up to $450m will be paid on achieving specified development and regulatory milestones related to triple combination therapies and selected future products that AstraZeneca develops using Pearl's technology platform.
With the purchase, AstraZeneca gains access to Pearl's new treatment for chronic obstructive pulmonary disease (COPD), which is currently under development, and inhaler and formulation technology.
PT003, Pearl's lead drug candidate, is a fixed dose combination of formoterol fumarate, a long-acting beta-2-agonist (LABA) and glycopyrrolate, a long-acting muscarinic antagonist (LAMA).
The new drug is delivered by inhalation through a pressurised metered dose inhaler (pMDI) using Pearl's novel co-suspension formulation technology platform. The platform is expected to allow AstraZeneca to explore combinations of existing and novel technologies.
AstraZeneca chief executive officer Pascal Soriot said that chronic obstructive pulmonary disease continues to increase worldwide and there is a growing need for the next generation of inhaled combination products.
"Combined with our on-market portfolio, including Symbicort, and our strong pipeline, the agreement will enable us to offer further distinctive treatment options across the full spectrum of COPD and asthma to patients, physicians and payers," Soriot added.
Expected to close in the third quarter of 2013, the proposed transaction is subject to customary regulatory approvals.
