Japanese drug maker Astellas Pharma is selling its diabetes-related patents to a fund for $609 million, to then be invested in strategic initiatives, according to Reuters.

Royalty Pharma will own the patents and have the royalty rights relating to the use of dipeptidyl peptidase IV (DPP-IV) inhibitors for the treatment of type 2 diabetes.

"The sale of this large, passive, non-core financial asset will free up capital for reinvestment in strategic initiatives," said Astella CEO Yoshihiko Hatanaka.

The company will use the funds to invest further in its core areas including urology, transplant-related medicines, infectious diseases and cancer treatments.

The patents belong to Prosidion, a unit of U.S. cancer specialist OSI Pharmaceuticals, which Astellas acquired last year. Astellas said the transaction will have a minimal impact on its earnings forecasts for the current financial year.