Leading in the Psychedelic Space: Q&A with Tarek Rabah

New research into psychedelics is unlocking potential new treatments in mental health and nephrology. Osuka America Pharmaceutical’s president and CEO Tarek Rabah spoke with Pharmaceutical Executive about the company’s mission and how its investing in psychedelics and other major areas.

Pharmaceutical Executive: How has Otsuka been a leader in the psychedelic-inspired medicine space?
Tarek Rabah: At Otsuka, we are passionate about serving healthcare needs worldwide and are committed to discovering treatments for complex diseases. This is foundational to our strategy as we pursue products and solutions that address persistent, unmet needs, in this case for patients living with treatment-resistant depression and PTSD.

Using the same rigorous approach that has guided our CNS innovations for decades, we’re deliberately seeking innovation across this therapeutic area as science evolves, including new modalities and conditions that were previously untreatable. This approach led us to expand into psychedelic-inspired compounds six years ago.

In 2020, Otsuka became the first major pharmaceutical company to invest in psychedelics with COMPASS Pathways, reflecting an early belief in its potential. We deepened that commitment in 2023 with the acquisition of Mindset, enabling us to advance promising compounds.

Today, Otsuka is forging a path of scientific excellence around the development of emerging novel therapies, translating the science of serotonergic agonists to develop new chemical entities with the goal of offering new hope to people living with mental health disorders who may not benefit from existing therapies.

We are working to ensure our health system is ready to keep pace with these treatments so patients can access them when they come to market.

PE: What is Otsuka’s broader external-innovation and deal-making strategy?
Rabah: At Otsuka, acquisitions and collaborations are an extension of our long-standing commitment to perseverance and clinical excellence. We partner with companies where we believe our expertise can help advance promising innovation and unlock more potential within Otsuka than they could on their own—ultimately maximizing the impact for patients worldwide.

PE: What is Otsuka’s acquisition strategy?
Rabah: We pursue acquisitions strategically and with the same rigor that has defined Otsuka’s research and development. We prioritize companies that are advancing promising mid- and late-stage compounds that align with our clinical expertise and build on our strong track record of discovering, developing, and commercializing best-in-class and first-and-only medicines.

Company culture is also important, and we look for companies who share our mission to accelerate access to breakthroughs for underserved patients.

This disciplined approach has allowed us to build a portfolio that balances focus with diversification, while also bringing in the talent and capabilities needed to fuel our next phase of growth.

A recent example is our expansion into specialty autoimmune disease through the acquisition of Visterra in 2018, which included VOYXACT® (sibeprenlimab-szsi) that has recently received accelerated approval for reducing proteinuria in adults with primary IgAN at risk for disease progression.

PE: How will Otsuka leverage legacy in neuroscience?
Rabah: We’ll continue to ensure mental illnesses and brain diseases are approached with the same priority and urgency as physical health and recognized as chronic diseases that warrant early, equitable, and accessible intervention.

From early research to commercialization, our expertise enables us to continue transforming what we can do in neuroscience, especially in serious mental illness. This includes a robust pipeline, including products such as an investigational compound for the treatment of ADHD and an exploratory treatment for major depressive disorder, general anxiety disorder, and schizophrenia.

Going forward, we want to build on this expertise to ensure patients everywhere can access the treatment they need. From breaking down stigma and raising awareness for mental health conditions to addressing systemic barriers to accessing medication, we want to continue leading the charge towards quality mental health care for all patients.

PE: What is Otsuka’s strategy heading into the 2030’s?
Rabah: The next decade will be the most transformative period in Otsuka’s history. We see a clear opportunity—and responsibility—to invest where unmet need remains high, in CNS and nephrology, as well as moving decisively into immunology and rare disease.

Right now, our autoimmune pipeline has several assets, including both antibody and small molecule compounds, some that target “undruggable” mechanisms. We have a clear roadmap and will continue to invest aggressively, steadily building a solid pipeline to become a next generation autoimmune leader in the next 10 years.