Asahi Kasei Bids $1.1B for Calliditas Therapeutics

Japanese conglomerate Asahi Kasei has made a SEK 11.1 billion ($1.1 billion) bid to acquire Swedish pharmaceutical firm Calliditas Therapeutics. The board of directors at Calliditas has recommended that shareholders accept the offer. This strategic move underscores Asahi Kasei’s ambition to enhance its global healthcare footprint, particularly in immunology and transplantation, while also bolstering its short-term pharmaceutical business.

Asahi Kasei has been actively seeking acquisitions that align with its growth strategy. This latest offer follows its significant purchase of Veloxis Pharmaceuticals for DKK 8.8 billion ($1.28 billion) in 2019.

The timing of the proposed acquisition coincides with Calliditas receiving full FDA approval for its drug Tarpeyo in December 2023. Tarpeyo is designed to treat adults with primary immunoglobulin A nephropathy (IgAN) and is currently the only treatment approved to reduce kidney function loss. The drug has proven to be a significant revenue generator for Calliditas, bringing in SEK 1.075 billion ($102 million) in 2023 and SEK 278.3 million ($26.4 million) in the first quarter of 2024. Calliditas forecasts that Tarpeyo will achieve between $150 million and $180 million in sales by the end of 2024.

Asahi Kasei views Tarpeyo as a strong complement to its existing geographic and therapeutic areas. The acquisition of Calliditas will not only enhance Asahi Kasei’s presence in the U.S., thanks to an expanded in-house sales structure, but also strengthen its R&D activities in Europe. Additionally, the deal is expected to broaden Asahi Kasei’s in-licensing and new drug development pipeline.

“Calliditas has infrastructure in several markets where Asahi Kasei currently has limited resources, including Sweden,” Asahi Kasei stated in their announcement.

The Calliditas board has encouraged shareholders to accept Asahi Kasei’s public tender offer, highlighting the benefits of becoming part of a larger company. This merger is anticipated to accelerate Calliditas’s revenue growth and advance its pipeline development. Following the announcement, Calliditas’s stock price surged by 75% in premarket trading.

However, Asahi Kasei has indicated that the acquisition may lead to organizational, operational, and employee changes at Calliditas. They emphasized that a thorough review will be necessary to address these potential alterations. The acceptance period for the offer is expected to begin around July 18, 2024, and close around August 30.

This acquisition represents a significant step for Asahi Kasei as it continues to expand its global healthcare operations and enhance its pharmaceutical capabilities.