Japanese firm Takeda will acquire biotech TiGenix in a €520 million cash deal that hinges on European approval of the latter’s stem cell therapy for Crohn’s disease, Cx601.
Cx601 is an off-the-shelf therapy for the treatment of perenial fistulas that arise as a result of Crohn’s disease; the therapy employs the use of allogeneic expanded adipose-derived stem cells. Results from the trial saw approximately half of the patients achieve remission. Takeda had already bought the ex-USA rights to the therapy in 2016 for $25 million. This latest, encompassing deal will also give Takeda control of the USA efforts for the therapy where a Phase 3 trial is ongoing. Recommended by the European Medicine’s Agency’s (EMA) drug review group for approval last month, Cx601 is expected to reach markets in the first quarter of this year – a condition of the Takeda buyout. The deal additionally rests upon the condition that there is an “absence of a material adverse effect occurring at any time after the date of the announcement.”
The deal prices TiGenix’s shares at €1.78, a generous 82% premium over its closing price immediately prior to the deal’s announcement. The company has struggled to maintain a €1 share price over recent years, thus the deal will prove very profitable for most shareholders.
Source: Takeda strikes €520M deal to buy cell therapy firm TiGenix. Press Release