Drugmaker known for ALS medication to be acquired by Japanese company in $2.5B deal

A pharmaceutical company based in New Jersey that’s known for its FDA-approved treatment for ALS is set to be acquired for $2.5 billion.

Tanabe Pharma America, which operates a U.S. headquarters in Jersey City, announced Dec. 22 that it reached an agreement with Japanese pharmaceutical company Shionogi regarding the transfer of global rights to its medication Radicava.

As part of the transaction, Tanabe will establish a new U.S. company to manage the Radicava business, which Shionogi will acquire as a wholly owned subsidiary.

The acquisition must still receive regulatory approvals. If all goes according to plan, the sale is expected to close in April 2026.

“As the company that helped bring RADICAVA®to patients in the United States and Canada, we are incredibly proud of the impact this therapy has had on the ALS community,” said Yasutoshi Kawakami, president of Tanabe, in a press release.

“By transitioning the RADICAVA®business to Shionogi, we believe the product is well positioned to continue reaching patients and caregivers who rely on it, while Tanabe Pharma America sharpens its focus on advancing future therapies,” Kawakami said.

Company leaders with Shionogi said the acquisition of Radicava represents a commitment to the treatment of rare diseases.

“We are very excited to welcome this team and outstanding medicine to our U.S. business. This planned acquisition will solidify our strategic focus in rare disease and immediately add capabilities to ensure long term success in this important category,” said President and CEO Nathan McCutcheon in a press release.

“Going forward, this infrastructure will support future launches in rare disease including Shionogi’s development programs in Fragile X syndrome, Jordan’s Syndrome and Pompe disease,” McCutcheon said.

The company expects the acquisition to boost global sales by approximately $700 million.

Radicava is a prescription medication used to treat ALS, commonly known as Lou Gehrig’s Disease. It’s considered a rare disease, affecting less than 30,000 people in the U.S., according to the Centers for Disease Control and Prevention. The cause is unknown and there’s no cure.

The FDA first approved an IV version of Radicava in 2017 and an oral version in 2022.

It’s one of only four drugs available to people living with the progressive neurodegenerative disease, according to the ALS Association.