Japan-headquartered Sosei Group Corporation is acquiring from Swiss firm Idorsia Ltd and Idorsia Pharmaceutical Ltd all shares of Idorsia Pharmaceuticals Japan Ltd and Idorsia Pharmaceuticals Korea Co., Ltd.

The strategic transaction also includes the Japan and APAC (ex-China) territory rights to a pipeline of medicines from Idorsia’s portfolio, with lead product PIVLAZ (clazosentan) already commercially available and with fast-growing sales in Japan following a successful launch in April 2022.

Sosei Heptares will fully finance the transaction, which is valued at approximately JPY65 billion, through a combination of JPY25 billion of existing cash from its balance sheet and a new JPY40 billion long-term (7-year), low-rate unsecured corporate loan through Mizuho Bank.

The transaction also brings together complementary capabilities to develop and commercialise novel medicines across Japan and APAC (ex-China) from three sources of innovation: (i) Sosei Heptares’ wholly owned discovery and early development pipeline, (ii) selected clinical candidates from Idorsia’s pipeline, and (iii) in-licensing of Japan/APAC (ex-China) rights to clinical product candidates from third parties.

In addition, the company will continue to seek partners for novel candidates or programmes discovered by Sosei Heptares for development and commercialisation outside of Japan/APAC territories where significant unmet needs exist as well as the requirements for substantial expertise and resources.

The Japanese pharma market is the second-largest developed single market in the world (ex-China) valued at $85 billion in 2021 and, with a large, ageing population, is expected to continue to grow rapidly over the coming years as patients demand the latest and most effective treatments.