U3 Shut Down As Daiichi Sankyo Streamlines R&D
This article was originally published in PharmAsia News
Executive Summary
Some seven and a half years after buying the venture, Daiichi Sankyo is shutting down its German oncology biologics research operation U3 Pharma, although its remaining pipeline assets are being retained internally.
TOKYO - Daiichi Sankyo Co. Ltd. is closing down its U3 Pharma AG biologics research subsidiary in Germany following a review of global R&D capacities, after paying €150m (currently $159m) for the privately held venture back in May 2008.
The Japanese firm said in a brief statement that the move forms part of efforts to strengthen its global R&D activities "by increasing efficiency and streamlining processes."
Martinsried-based U3 currently employs around 40 people, but Daiichi Sankyo in Japan was non-committal when asked by PharmAsia News on what will happen to these staff, avoiding specific comments on whether they would be offered redundancy packages or relocation options.
Given that U3's core functions will be concentrated within the parent group and its R&D activities transferred to Daiichi Sankyo's Biologics function in Tokyo, the latter option would appear difficult however.
Daiichi Sankyo did say however that an update on the impact of the closure on its current fiscal year guidance - presumably related to such costs - would be announced at a later date.
Oncology Pipeline Boost
The company said at the time of the acquisition that the move was taken to secure access to novel biologics in oncology, where the Japanese firm's own pipeline was thin and which it described as "an ideal strategic fit for our oncology portfolio."
Several ex-U3 projects are still listed as in active development within Daiichi Sankyo's pipeline, notably the HER3-targeting antibody patritumab (U3-1287), which is in a Phase III program for non-small cell lung cancer (Phase I in Japan) in combination with erlotinib, BioMedTracker
notes.
US Phase II trials for breast cancer (Phase I in Japan), and an EU Phase I program for head and neck cancer are also ongoing.
U3 had partnered the molecule with Abgenix in 2002 and following the acquisition of this firm by Amgen Inc. in 2006, is now partnered with Amgen.
U3-1565, an anti-HB-EGF antibody for solid cancers, is also listed in Phase I in the US and Japan at Daiichi Sankyo, but several other U3 projects at the time of the acquisition targeting receptor tyrosine kinase or its ligand - including U3-1800 and U3-1764 - appear to have been discontinued.
U3 was originally set up in 2001 by cancer researcher Professor Axel Ullrich of the Max Planck Institute, and had raised around €42m prior to the Daiichi Sankyo acquisition.