Takeda, Astellas and Sumitomo Mitsui Banking Announce Master Agreement to Establish Joint Venture Company for Incubation of Early Drug Discovery Programs

On April 22, 2024 Takeda Pharmaceutical Company Limited (TSE: 4502/NYSE: TAK, President and CEO; Christophe Weber, "Takeda"), Astellas Pharma Inc. (TSE: 4503, President and CEO: Naoki Okamura, "Astellas"), and Sumitomo Mitsui Banking Corporation (President & CEO: Akihiro Fukutome, "SMBC") reported that the three companies signed a master agreement on April 22, 2024, to establish a joint venture company (Press release, Astellas, APR 22, 2024, View Source [SID1234642187]). The new company will be dedicated to the incubation*1 of early drug discovery programs, primarily originating from Japan and toward the creation of innovative therapeutics.

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1. Background
Japan, as one of the world’s leaders in drug discovery and development, is home to both world-class academic institutions conducting innovative basic research in drug discovery and global pharmaceutical companies, with extensive expertise in early drug research and development. Both possess a wealth of early drug discovery programs with breakthrough potential. However, in recent years, advancing academic discoveries from bench to bedside, known colloquially as the "valley of death", has presented a major challenge when it comes to unleashing the full potential of innovative technologies and seed assets originating in Japan. In response to this challenge, the three companies have been engaged in discussions to establish a joint venture company that will seamlessly cover the entire drug discovery process, spanning early drug discovery research through the inception of drug discovery startups.

2. Joint Venture Company: Planned Overview

Name To be determined
CEO Toshio Fujimoto, MD, MBA*
Location Shonan Health Innovation Park (Fujisawa, Kanagawa, Japan)
Capital Approximately 600 million yen (including capital reserve)
Capital Structure Takeda 33.4%, Astellas 33.4%, SMBC 33.2%
Establishment Mid-2024
Business Incubation of early discovery programs to develop innovative therapeutics primarily originated from Japan
*Toshio Fujimoto will concurrently serve as President and Representative Director of the iPark Institute Co., Ltd.

3. Business Focus
The joint venture company will focus on the following three aspects:

Advancing innovative drug discovery programs primarily originating in Japan into the global pharmaceutical market.
Incubating globally competitive drug discovery technology and fostering entrepreneurship.
Unleashing the potential of drug discovery ecosystem in Japan through the creation of high caliber start-up companies.
In addition to establishing the joint venture company, Takeda and Astellas will provide support to the joint venture company leveraging their expertise gained from global drug discovery research and development, aiming to accelerate open innovation in early-stage drug discovery, and toward the creation of start-up companies for the benefit of society.

The joint venture company plans to begin incubation activities by collaboratively working with academia, pharmaceutical companies, and start-up companies across Japan to enable access to potentially transformative early drug discovery programs.

4. Future Plans
The three companies will further discuss the details of the agreement to complete the inception of the joint venture company and commence operations, aiming for a swift launch of the new incubation activities.