Otsuka bets on Cantargia in deal worth up to $613 million

Japanese drugmaker Otsuka Pharmaceutical (TYO: 4578) has signed a deal to acquire Cantargia’s CAN10 program in a transaction worth up to $613 million. The move hands Otsuka global rights to an early-stage antibody therapy targeting IL1RAP, as the company doubles down on its autoimmune disease pipeline.

Under the agreement, Cantargia (Nasdaq Stockholm: CANTA) will receive $33 million upfront, plus potential milestone payments totaling $580 million. The Swedish biotech is also eligible for tiered, double-digit royalties on future product sales.