This blog is the latest installment in a series, Innovations Advanced by M&A, that underscores the unique role of mergers and acquisitions in promoting a competitive and innovative life sciences ecosystem for patients. You can find previous blogs in this series here.
Mergers and acquisitions (M&A) and other partnerships serve as a vital bridge in America’s life sciences ecosystem, allowing companies of all sizes to connect promising therapies with the resources and expertise needed to bring them to patients. Astellas’ 2023 acquisition of Iveric Bio is one of many examples demonstrating how M&A can help support the transition from initial development to commercialization and continued innovation.
Iveric Bio was founded in 2007 by Dr. Samir Patel, a trained ophthalmologist with a passion for treating retinal diseases in his clinical practice. After helping to develop a first-in-class treatment for wet age-related macular degeneration (AMD), he set his focus on treating other retinal diseases, like geographic atrophy.
Geographic atrophy is an advanced form of age-related macular degeneration, a disease that causes progressive cellular loss in the macula – the portion of the retina responsible for detailed central vision. It affects as many as 1.5 million people in the U.S. and roughly 66% of patients may become blind or visually impaired without treatment – leading to the inability to drive, work, read or even recognize friends and family.
Iveric Bio successfully pioneered a promising treatment that could help slow the progression of geographic atrophy. The company was then acquired by Astellas in July 2023 as it prepared for the significant undertaking of launching and distributing the medicine – a critical inflection point.
“The opportunity to create a world-class entity with the ophthalmology expertise and capabilities of Iveric Bio and the global reach and resources of Astellas is unique and has the potential to benefit patients worldwide suffering from blinding retinal diseases, including GA.” – Pravin U. Dugel, MD, President, Iveric Bio (July 2023)
Later that year, the FDA approved Izervay (avacinaptad) as a new treatment shown to significantly slow geographic atrophy progression over 12 months. By tapping into Astellas’ established resources and infrastructure, Iveric Bio was able to quickly scale up distribution and bring this approved medicine to more patients in need.
“Iveric Bio has promising programs including Avacincaptad Pegol (“ACP”), an important program for Geographic Atrophy (“GA”) secondary to Age-Related Macular Degeneration (“AMD”)… We believe that this acquisition will enable us to deliver greater value to patients with ocular diseases at high risk of blindness.” – Naoki Okamura, President and CEO, Astellas
Following the acquisition, Iveric Bio continued to operate as a wholly owned subsidiary of Astellas. Supported by the larger company’s substantial resources and expertise, Iveric Bio was also able to continue conducting clinical trials and secured expanded approval for the use of Izervay beyond an initial 12-month treatment period – establishing it as a long-term management option for patients with geographic atrophy.
Astellas’ acquisition of Iveric Bio illustrates the unique and fundamental role of M&A and other collaborations in supporting innovation across America’s dynamic life sciences ecosystem. As policymakers weigh important decisions affecting competition in the life sciences, it is vital they account for this reality and avoid impeding pro-competitive partnerships.