AstraZeneca (AZN) inked a deal on Monday to buy Pearl Therapeutics, a privately-held maker of lung disease drugs, for up to $1.15 billion.
The deal is expected to give London-based AstraZeneca access to a potential new treatment for chronic obstructive pulmonary disease, currently in late-stage development, and inhaler and formulation technology that it says provides a platform for “future combination products.”
“Chronic obstructive pulmonary disease continues to increase worldwide and there is a growing need for the next generation of inhaled combination products,” AstraZeneca CEO Pascal Soriot said in a statement.
Redwood City, Calif.-based Pearl’s lead investigative project known as PT003 is a fixed dose combination of formoterol fumarate, expected to become a new class of treatment for chronic obstructive pulmonary disease.
AstraZeneca said the acquisition, scheduled to close in the third quarter pending regulatory approvals, will have no impact on its fiscal 2013 guidance.
Under the terms of the transaction, the drug maker will buy 100% of Pearl’s shares for an initial consideration of $560 million with deferred consideration of up to $450 million that will be payable if certain development and regulatory milestones are met. Another $140 million is payable if pre-agreed cumulative sales thresholds are exceeded.
Shares of AstraZeneca ticked narrowly higher to $51.70 on Monday morning.