Otsuka Pharmaceutical has announced that it will be acquiring clinical-stage biotech Jnana Therapeutics in a deal worth over $1.1bn.
The deal gives the company access to an oral drug that has demonstrated promise as a treatment for the rare inherited metabolic disorder phenylketonuria (PKU).
Affecting one in every 13,500 to 19,000 newborns in the US, PKU is caused by a deficiency in the enzyme needed to metabolise the amino acid phenylalanine, which is found in virtually all protein-containing foods.
As a result, phenylalanine accumulates at abnormally high levels in the blood and, if left untreated, causes progressive and severe neurological impairment and neuropsychological complications.
Jnana’s JNT-517 is an allosteric small molecule inhibitor of SLC6A19, a solute carrier that regulates amino acid reabsorption in the kidney, and has already been shown in a phase 1b/2 study to be effective, well-tolerated and safe.
The candidate is expected to advance into a registrational study next year and is hoped to “address individuals of all ages across the spectrum of mild-to-severe disease”, with Otsuka noting that the majority of PKU patients are not effectively treated with existing therapies.
The acquisition also includes RAPID, Jnana’s next-generation chemoproteomics platform designed to discover medicines for challenging-to-drug targets.
Joanne Kotz, chief executive officer and co-founder of Jnana, said: “Leveraging our platform, the team discovered JNT-517, a potential first-in-class oral medicine for the treatment of PKU, and has demonstrated positive clinical proof of concept for JNT-517 in individuals with PKU.
“We are excited to join Otsuka with our shared goal of developing transformative therapies for patients and look forward to advancing JNT-517 into a registrational study in 2025 and continuing to progress our pipeline of innovative oral medicines for autoimmune diseases.”
The definitive merger agreement, set to close in the third quarter of the fiscal year, will see Otsuka pay $800m to Jnana’s shareholders and up to $325m in development and regulatory milestones.
Makoto Inoue, president and representative director of Otsuka, said: “The addition of Jnana’s drug discovery technology and small molecule pipeline in PKU and autoimmune diseases will strengthen our research and development in the Boston area of the US… and, in a combined form, will have a synergistic effect on Otsuka’s global expansion.”