Yesterday afternoon, I listened with interest to a presentation on Pharma’s Deal Review: M&A Dynamics Ahead of JPM 2026 delivered by Marc de Garidel, Eric Tokat and Caroline Boulliat, several deals were mentioned; one caught my attention.
Shionogi (a Japanese pharmaceutical company) acquired the global rights to Radicava (edaravone), a treatment for Amyotrophic Lateral Sclerosis (ALS), from Mitsubishi Tanabe Pharma (MTP). The acquisition was announced on December 22, 2025, with an expected closing date on or after April 1, 2026. [1, 2]
Shionogi paid a lump sum of $2.5 billion to Mitsubishi Tanabe Pharma. [2, 3] The transaction includes both the intravenous (IV) and oral (Radicava ORS) formulations of edaravone. [4]
This acquisition expands Shionogi’s presence in the rare disease and neurology therapeutic areas. [2] Radicava is a revenue-generating asset, with estimated annual global sales of ~$700 million. [1] Shionogi aims to leverage its existing U.S. infrastructure to maximise the drug’s commercial potential. [2, 3]
The deal allows MTP to strengthen its financial foundation and reallocate resources toward other strategic priorities, such as pipeline development in areas like immunology and oncology. [3]
Shionogi gains a marketed rare disease product, complementing its existing portfolio and reducing reliance on traditional infectious disease and pain management franchises. [1, 2]
The press highlighted the transaction as a strategic move for both companies. Fierce Pharma noted Shionogi’s ambition to become a “global innovator in speciality medicine,” while BioWorld emphasised the deal’s financial significance, given Radicava’s established revenue stream. [1, 5]
Amyotrophic Lateral Sclerosis (ALS) is a brutal, progressive, and fatal neurodegenerative disease with catastrophic unmet medical needs. Prior to 2017, the treatment arsenal was limited to just one approved drug, riluzole, which offers only a modest survival benefit. The desperation of patients and clinicians creates a market that is often receptive to any therapy that demonstrates a sign of benefit. Radicava has a proven, if modest, efficacy record and a highly convenient oral formulation.
As new drugs enter the space, study designs are driving ALS therapy towards combination therapies where multiple drugs are used simultaneously, solidifying the place for Radicava alongside newer market entrants.
A recent setback for Relyvrio reshaped the competitive landscape, undoubtedly making the revenue stream from Radicava appear more secure.
Whilst the risk of pipeline attrition in this space is very high, several new therapies are in development, all of which could threaten Radicava’s revenue stream, raising the question for me whether the acquisition is a play for a position in the ALS space more generally.
- Pharma, F. ALS med Radicava to change hands as Shionogi inks $2.5B buyout. Available from: https://www.fiercepharma.com/pharma/als-med-radicava-change-hands-shionogi-inks-25b-buyout
- Shionogi. Shionogi Expands Rare Disease Presence with Planned Acquisition of Global Rights to Tanabe Pharma Corporation’s RADICAVA ORS® (edaravone) and IV RADICAVA. Available from: https://www.shionogi.com/us/en/news/2025/12/shionogi-expands-rare-disease-presence-with-planned-acquisition-of-global-rights-to-tanabe-pharma-corporations-radicava-ors-edaravone-and-iv-radicava.html
- Pharma, T. Notice Regarding Execution of Transfer the RADICAVA Business. Available from: https://www.tanabe-pharma.com/en/news/rel_251222/main/0/link/e_rel_251222.pdf
- Newswire, P. Tanabe Pharma America Announces Transfer of RADICAVA® Business to Shionogi. Available from: https://www.prnewswire.com/news-releases/tanabe-pharma-america-announces-transfer-of-radicava-business-to-shionogi-302648028.html
- BioWorld. Shionogi nabs revenue-generating ALS drugs with $2.5B Tanabe pact. Available from: https://www.bioworld.com/articles/727355-shionogi-nabs-revenue-generating-als-drugs-with-25b-tanabe-pact?v=preview.
