Otsuka agrees to acquire Transcend Therapeutics for $1.22bn

The deal is anticipated to close in the second quarter of 2026, subject to standard conditions. The acquisition aims to expand Otsuka’s portfolio in the psychiatric and neurological fields.

Under the agreement, Otsuka will make a $700m payment to Transcend shareholders upon closing. Additionally, up to $525m in further payments may be made based on the achievement of future sales milestones related to assets under development.

Established in 2021, Transcend is developing TSND-201 (methylone), a rapid-acting neuroplastogen intended as a treatment for post-traumatic stress disorder (PTSD) and other psychiatric conditions.

TSND-201 targets monoamine transporters for norepinephrine, dopamine, and serotonin in the brain, promoting their release and enhancing neuroplasticity.

It showed favourable results in the Phase II IMPACT‑1 trial for adults with PTSD, published in the Journal of the American Medical Association (JAMA) Psychiatry in February 2026.

The FDA granted breakthrough therapy designation in July 2025. Transcend started patient recruitment for the Phase III trial after discussions with the FDA.

Otsuka president and representative director Makoto Inoue said: “We are very pleased to welcome Transcend Therapeutics into the Otsuka group. Although treatment options for PTSD remain limited, TSND 201 is generating expectations as a potential paradigm-shifting therapy in the field of psychiatry.

“By combining Otsuka’s long‑standing expertise in the psychiatric and neurological fields with Transcend’s innovative approach, we will advance the development of TSND-201 in close collaboration with regulatory authorities to bring this new treatment option to patients.”

Otsuka’s acquisition will support further development of TSND-201 and expand its presence in psychiatric therapeutics.

Earlier this year, the US Food and Drug Administration accepted for priority review Otsuka’s new drug application (NDA) submitted for centanafadine, an investigational, once-daily extended-release capsule for attention-deficit hyperactivity disorder (ADHD) treatment.

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