Health and Healthcare

Could This New Deal Double Akebia Therapeutics?

Chris Lange

Published: December 14, 2015 8:50 am

Last Updated: January 13, 2020 4:08 pm

Akebia Therapeutics Inc. (NASDAQ: AKBA) led the bulls early on Monday following news of what looks like a big commercialization partnership in Asia. The company announced a development and commercialization agreement with Mitsubishi Tanabe Pharma for vadadustat (formerly AKB-6548) in Japan and certain other countries in Asia.

Vadadustat is an oral therapy for the treatment of anemia related to chronic kidney disease (CKD).

In terms of the agreement, Mitsubishi will make payments totaling $100 million for costs associated with the global Phase 3 program for vadadustat, including $40 million at the signing. Additionally, Akebia is eligible to receive up to roughly $250 million in additional milestone payments, subject to the achievement of certain development and sales milestones.

Mitsubishi will also make tiered royalty payments, from low teens up to 20%, on sales of vadadustat in Japan, Taiwan, South Korea, Indonesia, India and other Asian countries.

Because Akebia only has a market cap of roughly $300 million, if it got the maximum amount of cash from this deal, the company would effectively double its market cap.

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