Otsuka Completes Acquisition of Transcend Therapeutics to Advance Next-Generation Neuropsychiatric Treatments

The acquisition will expand Otsuka’s continued investment in emerging, next-generation neuropsychiatric treatments for serious mental illness

PRINCETON, N.J.--(BUSINESS WIRE)--Otsuka America, Inc., a subsidiary of Otsuka Pharmaceutical Co., Ltd. has completed the acquisition of Transcend Therapeutics, Inc., a clinical-stage biotechnology company developing a rapid-acting treatment for post-traumatic stress disorder (PTSD). This is the latest in a series of investments Otsuka has made to advance next-generation treatments for serious neuropsychiatric conditions.

Transcend will operate as a wholly owned subsidiary of Otsuka America, Inc. Under the terms of the agreement, Otsuka paid $700 million to Transcend shareholders at closing, with up to $525 million in additional contingent consideration based on future sales related to assets in development.

“This marks an important step forward in our continued commitment to patients and their families in need of more treatment options for serious mental illness,” said Tarek Rabah, president and CEO, Otsuka North America Pharmaceutical Business. “By combining Otsuka’s decades of expertise in central nervous system disorders with Transcend’s pioneering approach, we are well positioned to accelerate the development of new treatment options for those who continue to face significant unmet needs.”

Transcend’s lead investigational candidate, TSND-201 (methylone), is a rapid-acting neuroplastogen being developed as a potential treatment for PTSD. In the United States, more than 13 million individuals are estimated to be affected by PTSD each year, yet no new treatments have been approved for more than 25 years, underscoring a large unmet need.

TSND-201 demonstrated favorable results in a Phase 2 clinical trial (IMPACT-1), and a Phase 3 trial is currently underway to further evaluate its safety and efficacy. The therapy has received Breakthrough Therapy designation from the U.S. Food and Drug Administration (FDA) and was selected as part of the priority voucher program to accelerate access to psychedelic treatments.

“Joining Otsuka marks an exciting new chapter for Transcend and the patients we aim to serve,” said Blake Mandell, CEO of Transcend. “Otsuka’s scientific rigor, global scale, and long-standing commitment to advancing mental health innovation will help accelerate our efforts to develop transformative therapies and expand access to new treatment options for the people who need it most.”

This acquisition builds on Otsuka’s longstanding leadership in central nervous system disorders and commitment to advancing treatment options for patients living with serious neuropsychiatric conditions like PTSD. By integrating Transcend’s innovative approach, Otsuka aims to continue advancing scientifically rigorous therapies that deliver safe, effective, and accessible options that meaningfully improve patient outcomes.

About Otsuka

Otsuka Pharmaceutical Co., Ltd. is a total healthcare company that focuses on each individual's potential to enhance their well-being. Our medical-related business provides treatments and diagnostics for both physical and mental health. Our nutraceutical business supports daily health maintenance and improvement. Otsuka's unique products and services are based on scientific evidence, under the guidance of our corporate philosophy: Otsuka-people creating new products for better health worldwide.

About Transcend Therapeutics

Transcend, founded in 2021 and based in New York City, is a clinical-stage, neuroscience-focused company developing rapid-acting treatments for neuropsychiatric diseases. The company's mission is to develop new drugs for the millions of people for whom current psychiatric medicines have not worked. Visit http://www.transcendtherapeutics.com for more information.