By Kosaku Narioka

Astellas Pharma Inc. said Monday that it agreed to acquire Iveric bio Inc. for about $5.9 billion to strengthen its capabilities in the ophthalmology field.

The Japanese drugmaker said it would fund the planned acquisition with about 800 billion yen of bank loans and commercial papers, in addition to existing cash on hand, and that it expected to repay new debt within the next five to seven years.

Astellas said Iveric Bio has promising programs and capabilities in the field of ophthalmology and the boards of both companies have unanimously approved the transaction.

The Japanese company said it would pay $40.00 per share of Iveric, which booked net loss of $185.2 million and had $534.7 million in net assets in 2022.

Astellas said it planned to complete the acquisition in the July-September quarter.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

April 30, 2023 20:42 ET (00:42 GMT)

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