Japan's Shionogi & Co. will acquire a newly established company that Tanabe Pharma Corporation will create to hold the rights to RADICAVA ORS® (edaravone) and IV RADICAVA. Tanabe Pharma plans to form this new entity, and Shionogi intends to purchase 100% of its shares. The agreement between Shionogi and Tanabe Pharma has been signed. As part of the transaction, a new business company established by Tanabe for RADICAVA in the US will become a wholly owned subsidiary of Shionogi Inc.
RADICAVA ORS is approved by the US Food and Drug Administration (FDA) and other regulatory agencies around the world for the treatment of amyotrophic lateral sclerosis (ALS), a progressive neurodegenerative disease for which there is no cure and few treatment options. RADICAVA ORS, along with a previously available intravenous formulation, have been used to treat more than 20,000 people with ALS in the US to date.
Under this agreement, Shionogi will pay a lump sum of $2.5 billion to Tanabe Pharma through Shionogi Inc., upon completion of the procedures. Additionally, Shionogi may pay a royalty on future sales, subject to certain conditions. Going forward, the RADICAVA ORS® and IV RADICAVA business company will commence operations as a wholly owned subsidiary of Shionogi Inc.
