Historic Otsuka-Proteus agreement on new drugs with sensor ($700m)

Historic agreement between Japan-based group Otsuka and Proteus Digital Health: the deal aims to extend the existing collaboration, which has already led to the FDA approval of Abilify Mycite–that is Otsuka Pharmaceutical’s antipsychotic drug Abilify (aripiprazole), including a sensor that interacts with a receptor built in a plaster provided to patients, expected to help them remember to take the drug. Medicine compliance is a key issue for pathologies requiring antipsychotic drugs and dementia-related psychosis. It is expected to soon generate a multi-billion market. Indeed, according to consulting company Rock Health, the digital health market has already attracted a large number of investors, who have invested $6.8bn in it in 2018.

As part of the agreement, Otsuka will make a first $88m investment in Proteus, becoming a shareholder. Otsuka’s stake might increase to at least $500-$700m in the future, provided that new drugs with built-in ingestible sensors are approved.

(Source: Proteus Health Digital)