Outcome Capital facilitated the acquisition of Propella Therapeutics, a biopharmaceutical company specializing in lymphatic targeting for oncology drugs, by Astellas Pharma US. The merger involves acquiring Propella’s proprietary platform, notably the drug PRL-02, a potential treatment for prostate cancer. PRL-02, an innovative prodrug of abiraterone, demonstrates selectivity in inhibiting CYP17 lyase and is advancing through clinical trials. Astellas will pay $175 million in cash for Propella, aiming to advance novel treatments for cancer patients.
Outcome Capital, a highly specialized life sciences advisory and investment banking firm, announced that Propella Therapeutics, Inc., a biopharmaceutical company that has developed a platform for lymphatic targeting to create best- or first-in-class oncology drugs, has been acquired by Astellas Pharma US, Inc. Outcome Capital is a strategic advisor to Peterson Companies, majority shareholder of Propella.
Astellas and Propella have entered into a merger agreement pursuant to which Astellas will acquire Propella. Propella is a privately held biopharmaceutical company that has leveraged a wholly owned proprietary platform enabling lymphatic targeting of novel oncology drugs. Through the acquisition of Propella, Astellas will acquire PRL-02 (abiraterone decanoate), a next-generation androgen biosynthesis inhibitor being developed by Propella to treat prostate cancer. PRL-02 is a novel, long-acting prodrug of abiraterone that, following intramuscular injection, is expected to achieve high concentrations in target tissues where the active moiety, abiraterone, is continuously released. PRL-02 may provide improved efficacy and safety compared to existing treatment options by high CYP17 lyase inhibition selectivity. PRL-02 is currently in a Phase 1 clinical trial and is expected to enter Phase 2a clinical trials in 2024. Under the agreement, Astellas will pay $175 million in cash consideration to acquire all of the outstanding common stock and equity interests in Propella. Subject to customary closing conditions.
Mr. William Peterson, Chairman of the Peterson Companies Investment Board commented, “We are excited to have an industry leader in Astellas recognize the significant potential of the Propella platform and the value it offers to prostate cancer patients. As a long-standing portfolio company, the strategic guidance and life sciences expertise of Outcome Capital has been invaluable in navigating our investment and achieving this positive transaction. Astellas is well positioned to bring PRL-02 to patients and we commend William Moore, President and CEO of Propella, and the team for developing the asset to this point.”
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Dr. Oded Ben-Joseph, Managing Partner at Outcome Capital, added, “As the biotech/pharma industry continues to funnel significant resources to the challenging oncology segment, the Outcome team congratulates Peterson Companies on the transaction. It will allow Astellas to integrate Propella’s platform with their strategic vision of developing cost-effective novel drugs with a clear demonstration of improved clinical outcomes. We are confident that the Astellas team will successfully drive Propella’s technology through clinical development thereby offering better treatment options for prostate cancer patients.”
Source: Bio Space