Otsuka Completes Transcend Therapeutics Acquisition, Advancing Next-Gen Neuropsychiatric Treatments

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Otsuka America, a subsidiary of Otsuka Pharmaceutical, has completed its acquisition of the clinical stage biotechnology company Transcend Therapeutics. Transcend will continue to operate as a wholly owned subsidiary of Otsuka America.

Transcend Lead Candidate for PTSD

Most recently, Transcend has been developing a rapid-acting treatment for post-traumatic stress disorder (PTSD). Accordingly, the acquisition is the latest in a series of Otsuka investments to advance next-generation treatments for serious psychiatric conditions.

Transcend’s lead investigational candidate, the rapid-acting neuroplastogen TSND-201 (methylone), is a potential PTSD treatment. It has received Breakthrough Therapy status from the U.S. FDA, also selected as part of the agency’s Priority Voucher program.

TSND-201 demonstrated favorable results in a Phase II trial (IMPACT-1); a Phase III trial for safety and efficacy is ongoing.

In the United States, an estimated 13 million-plus individuals experience the effects of PTSD every year. However, no new treatments have been approved for over a quarter-century, spotlighting an ongoing unmet need.

The FDA’s Priority Voucher program, with respect to TSND-01, accelerates access to certain psychedelic treatments.

Otsuka Acquisition A Win for All

“Joining Otsuka marks an exciting new chapter for Transcend and the patients we serve,” Transcend CEO Blake Mandell said. “Otsuka’s scientific rigor, global scale, and long-standing commitment to advancing mental health innovation will help accelerate our efforts.”

Tarek Rabah, President and CEO, Otsuka North America Pharmaceutical Business, also weighed in.

“We are well positioned to accelerate the development of new treatment options for those [with] significant unmet needs,” Rabah said.

The parent Otsuka company paid $700 million to Transcend shareholders at closing. Up to $525 million more is available in future contingent consideration based on sales of assets in development.