Calliditas receives $1.1B offer from Asahi Kasei

Japanese conglomerate Asahi Kasei has announced a $1.1-billion cash offer to acquire Swedish biotech firm Calliditas Therapeutics. The proposed purchase price is SEK 208 ($19.72) per share, which signifies an 83% premium over Calliditas' last closing stock price. The board of Calliditas has unanimously advised shareholders to accept the offer, emphasizing the strategic benefits of joining a larger platform under Asahi Kasei's ownership.

Calliditas Therapeutics is primarily known for its leading product, Tarpeyo (budesonide), which is the only fully-approved treatment demonstrated to mitigate kidney function loss in adults with primary IgA nephropathy (IgAN) at risk of disease progression. This drug obtained full approval from the FDA in December and has conditional approval in Europe under the name Kinpeygo. Additionally, Calliditas is seeking approval for Tarpeyo in the Asian market.

Besides Tarpeyo, Calliditas has a promising pipeline that includes setanaxib, a NOX1/4 inhibitor. This drug is currently in Phase II trials for treating fibrotic rare diseases and solid tumors. The acquisition is a strategic move for Asahi Kasei, whose core products have historically been in the chemicals and materials sectors. This purchase aligns with Asahi Kasei's strategy to expand its pharmaceutical division, with a particular focus on immunology, transplantation, and related diseases.

The tender offer period is expected to commence around mid-July and conclude at the end of August. Shareholders representing 45% of Calliditas' shares have already committed to accepting the deal.

Earlier this year, Vertex Pharmaceuticals also expanded its kidney disease portfolio by acquiring Alpine Immune Sciences for $4.9 billion. This acquisition included Vertex's lead candidate, povetacicept, aimed at treating IgAN, showing a broader industry trend towards consolidation and expansion in the kidney disease treatment space.