Acquisition · Medical devices
Astellas buys bioelectronics startup iota Biosciences
- Buyer
- Astellas Pharma (Tokyo)
- Target
- iota Biosciences, California
- Value
- About $127.5M upfront, plus up to about $176.5M in milestones
- Status
- Completed on October 29, 2020.
- Date
- 2020-10-15
Astellas, already an investor and research partner since 2019, agreed to buy the rest of iota Biosciences, which develops tiny implantable devices powered by ultrasound that can sense and stimulate the body. Astellas paid about $127.5 million for the shares it did not own, with up to about $176.5 million more tied to milestones, and committed $125 million over five years to grow iota.
Why it matters
The deal was part of Astellas's "Rx+" plan to earn money from medical devices and digital health alongside drugs.
About iota
iota was founded in 2017 in Berkeley, California, by Michel Maharbiz and Jose Carmena. It holds exclusive licenses to "neural dust", millimeter-sized implants developed at UC Berkeley. Ultrasound both powers the devices and carries their data, so they need no battery or wires.
From partner to owner
Astellas had invested in iota's Series A round and signed a research deal in August 2019. Owning iota let Astellas speed up the projects under that deal and try the technology on other diseases. Astellas kept iota's name and its California team.
Sources
Kakehashi M&A News home
