Astellas Pharma Inc. and Propella Therapeutics, Inc. have entered into a merger agreement, marking a significant development in the field of digital wealth management. Through its U.S. subsidiary, Astellas will acquire Propella, a privately held biopharmaceutical company renowned for its innovative platform that combines medicinal chemistry with lymphatic targeting to create new oncology drugs.

The centerpiece of this collaboration is the acquisition of Propella's flagship product, PRL-02 (abiraterone decanoate), a next-generation androgen biosynthesis inhibitor designed for the treatment of prostate cancer. PRL-02, currently in a Phase 1 clinical trial with Phase 2a trials expected in 2024, is a long-acting prodrug of abiraterone. It offers the potential for improved efficacy and safety through high CYP17 lyase inhibition selectivity.

Naoki Okamura, President and CEO of Astellas, highlighted the strategic fit of this acquisition, aligning with Astellas' commitment to providing therapeutic options for diseases with high unmet medical needs. The synergy with Astellas' global development and commercialization capabilities in cancer and urology is anticipated to expedite the development of PRL-02, delivering enhanced value to patients with prostate cancer.

William Moore, President and CEO of Propella, expressed satisfaction in Astellas recognizing and valuing PRL-02's potential as a best-in-class therapeutic for prostate cancer treatment. The partnership signifies a commitment to improving treatment options globally for prostate cancer patients.

Under the merger agreement, Astellas will pay approximately $175 million to acquire all outstanding common stock and equity interests in Propella. The transaction is expected to be completed during Astellas' fiscal year 2023, ending March 31, 2024, subject to customary closing conditions.