Astellas takes over $430 million in writedowns, including for Evrenzo

12 Apr 2023
firstwordpharma.com
Cell TherapyPhase 2ImmunotherapyFinancial StatementLicense out/in
Astellas said that it will book impairment charges totalling JPY 58 billion ($434 million) in the fourth quarter of fiscal year 2022 after terminating a deal and a pipeline candidate, as well as recording lower than expected sales of its key drug Evrenzo.
The company noted that "considering the sales situation" for Evrenzo in Japan and Europe, it will book an impairment loss of approximately JPY 45 billion ($336 million). The product, which is partnered with FibroGenFibroGen and used to treat anaemia of chronic kidney disease, generated revenue of JPY 900 million ($7 million) in the third quarter. Astellas now expects peak sales of Evrenzo of under JPY 50 billion ($376 million), down from an earlier range of between JPY 50 billion and JPY 100 billion ($752 million).
Analysts at Credit Suisse explained that the market for HIF-PH inhibitors, such as Evrenzo, has "not developed as much as initially expected," adding that it had seen a probable revision to forecasts for Astellas' product at some point.
The drugmaker noted that the impairment charges include JPY 8.6 billion ($65 million) after the termination of development of FX-322 for the treatment of sensorineural hearing loss. Partner Frequency Therapeutics disclosed earlier this year that a Phase IIb study of the drug failed to achieve its primary endpoint, prompting the firm to slash over 50% of its staff.
Astellas added that the impairment charges also comprise JPY 4.7 billion ($35 million) after it ended an agreement with Adaptimmune Therapeutics focused on stem-cell derived allogeneic T-cell therapies. Under the deal signed in 2020, Astellas and Adaptimmune agreed to develop T-cell therapy candidates directed to up to three cancer targets, with the latter receiving an upfront payment of $50 million, as well as being eligible for up to $897.5 million in further payments.
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