Britain's second largest pharmaceutical company, AstraZeneca, plans on buying U.S. based Pearl Therapeutics for up to $1.15 billion in hopes of reviving its product pipeline.
Pearl Therapeutics specializes on drugs for respiratory illnesses. AstraZeneca's acquisition of Pearl Therapeutics puts the former in the forefront of the emerging market for innovative lung treatments. These treatments, called LABA/LAMA drugs, are said to improve patients' lung conditions without the use of steroids.
Analysts predict that LABA/LAMA drugs are the next step in the battle against respiratory illness cure. Many believe that these drugs are the future of therapy for COPD, or chronic obstructive pulmonary disease. Over 200 million people are suffering from COPD worldwide.
This venture is especially strategic for AstraZeneca, which lacks a whole unit dedicated on respiratory pharmaceuticals.
The company said that it will pay $560 million at first, and is willing to pay up to $450 million if developments in the negotiation push through, or payments from sales reach another $140 million.
The acquisition is expected to close in the third quarter of 2013.
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