Astellas sells diabetes patents

Prosidion, a subsidiary of Astellas Pharma, has sold its patent estate relating to the use of dipeptidyl peptidase IV (DPP-IV) inhibitors for the treatment of type 2 diabetes to Royalty Pharma for $609m.

In July 2004, Prosidion acquired a portfolio of medical use patents related to the use of DPP-IV inhibitors for the treatment of type 2 diabetes. A number of non-exclusive licences to these patents have been granted to pharmaceutical companies around the world.

Royalty Pharma will be entitled to receive 100 per cent of royalty payments and milestones related to the DPP-IV asset. It will also take over administration of the DPP-IV patent estate currently owned by Prosidion.

Yoshihiko Hatanaka, president and chief executive of Astellas, said: "The sale of Prosidion's DPP-IV patent estate and royalty stream supports our strategic goal of maximising value for Astellas' shareholders. The sale of this large, passive, non-core financial asset will free up capital for reinvestment in strategic initiatives. We are pleased to have been able to work with Royalty Pharma in this important transaction."

Prosidion's assets include two drug candidates in development for diabetes and obesity, and research and development capabilities. Astellas will continue to review strategic alternatives for these assets. The range of alternatives that will be assessed could include minority investment or strategic alliance, a merger or sale of some or all of these assets.

Prosidion was acquired as part of Astellas' acquisition of OSI Pharmaceuticals in June 2010. The transaction is expected to close in July 2011.