VC firms support Japan-US drug development alliance
Drais Pharmaceuticals, a US-based firm backed by InterWest Partners and Sutter Hill Ventures, will form a partnership with Japan’s Astellas Pharma to jointly develop a new line of drugs. Astellas has agreed to transfer assets to Drais-operated Telsar Pharma, which will receive $14 million in funding from InterWest, Sutter Hill and Astellas Venture Management, the Japanese firm’s corporate VC arm.
The partnership will create and commercialize treatments for ulcerative colitis, an inflammatory bowel disease that affects the lining of the large intestine. Drais is to serve as exclusive provider of development services and Astellas will receive an upfront payment plus royalties on future sales.
"The unique structure of this partnership is reflective of Astellas' new multi-track R&D approach," said Yoshihiko Hatanaka, president and CEO of Astellas. "This new strategy enables us to move our promising compounds forward without any disruption in the development process. Additionally, this new approach allows us to optimize costs and control risks while accessing outside capital and expertise."
The companies already have a shared history. Drais' co-founders were previously senior management at Yamanouchi R&D, a precursor company to Astellas. They later worked at AkaRx alongside Arnold Oronsk, general partner at InterWest, and Jeff Bird, managing director at Sutter Hill, both of whom are now board members at Drais. Astellas Venture Management also previously invested in AkaRx.
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