Shionogi & Co., Ltd. (Japan) announced it will acquire 100% of the shares of a newly established subsidiary holding all rights to RADICAVA ORS (edaravone oral suspension 2.1%) and IV RADICAVA (edaravone intravenous injection) from Tanabe Pharma Corporation. The deal, valued at USD 2.5 billion, will see Shionogi’s U.S. arm take ownership of the RADICAVA business entity, which has treated >20,000 ALS patients in the United States.
Transaction Overview
Component
Details
Acquirer
Shionogi & Co., Ltd. (via Shionogi Inc., U.S. subsidiary)
Seller
Tanabe Pharma Corporation (Mitsubishi Chemical Group)
Asset
100% rights to RADICAVA ORS and IV RADICAVA
Purchase Price
USD 2.5 billion (lump sum)
Royalties
Potential future royalties subject to specific conditions
Target Disease
Amyotrophic Lateral Sclerosis (ALS)
U.S. Patient Base
>20,000 patients treated to date
Strategic Context
Timeline
Milestone
Sep 2024
Mitsubishi Chemical Group begins restructuring, plans to sell Mitsubishi Tanabe Pharma
Dec 2024
Bain Capital acquires Tanabe Pharma for 510 billion yen (≈ USD 3.3 billion)
Dec 2025
Shionogi acquires RADICAVA business for USD 2.5 billion
Drug Profile
Attribute
RADICAVA (Edaravone)
Formulations
Oral suspension (ORS) 2.1% and IV injection
Approval
U.S. FDA and other global regulators for ALS treatment
Mechanism
Free radical scavenger; slows disease progression
Market Position
One of few approved ALS therapies globally
Strategic Implications
For Shionogi:$2.5 billion acquisition strengthens rare disease franchise in the U.S.; departs from traditional Japanese pharma domestic focus; RADICAVA’s established patient base provides immediate revenue stream.
For Tanabe/Mitsubishi:Asset divestiture streamlines focus post‑Bain acquisition; $2.5 billion cash enhances capital allocation flexibility; royalty potential offers future upside.
For ALS Market:Consolidation of ALS treatment under global pharma ownership; R&D investment may accelerate next‑generation ALS pipeline development; pricing pressure may increase with corporate ownership.
Forward‑Looking Statements This brief contains forward‑looking statements regarding the acquisition’s closing timeline, royalty conditions, and integration strategy. Actual results may differ due to regulatory approvals, competitive dynamics, or market conditions.-Fineline Info & Tech
By Fineline Cube 