Otsuka Holdings Co announced that it would purchase Astex Pharmaceuticals Inc for nearly USD 900 million. The acquisition would enable Otsuka to expand their portfolio with the cancer therapies that are being developed by Astex. Otsuka Holdings is a Japan-based drugmaker while Astex is a California-based pharmaceutical firm focused on developing treatments for cancer and other life-threatening illnesses.

In a statement made through the Tokyo Stock Exchange, Otsuka said it would launch a tender offer in ten days. It would be purchasing Astex shares at USD 8.50 per share for a total of USD 886 million. According to the statement, Otsuka's tender offer would last for twenty days.

So far, Dacogen is Astex's only approved drug. Dacogen treats myelodysplastic syndromes which is a kind of blood disorder. Drugs that would treat lung, ovarian and prostate cancers are still under development by the US drugmaker.

In a statement Astex Chairman and Chief Executive Officer Dr. James S.J. Manuso said the resources and expertise of Otsuka would "enhance Astex's ability to build further its oncology portfolio, pipeline, and discovery prowess."