Sunovion is paying more than twice what Cynapsus Therapeutics shares closed at today to buy the Toronto-based biotech $CYNA and its late-stage Parkinson’s drug. Sunovion is shelling out $624 million in cash for the company at $40.50 per share.
The deal includes the Phase III drug APL-130277, which is designed to be a “fast-acting, easy-to-use, on-demand treatment option” for managing OFF episodes associated with Parkinson’s disease.
The deal was announced after the markets closed on Wednesday.
For Marlborough, MA-based Sunovion, a company formed in 2009 by melding Sepracor and the US operations of Sumitomo Dainippon Pharma, the buyout will help beef up a pipeline that includes drugs for schizophrenia, COPD and ADHD. Sumitomo Dainippon paid $2.6 billion for Sepracor in 2009.
Coming on the heels of Pfizer’s $14 billion deal for Medivation, the acquisition will provide fresh evidence that biotech assets are fetching a hefty premium in the second half of 2016, which will likely help bolster biotech stocks.
Sunovion CEO Nobuhiko Tamura had this to say:
“The acquisition of Cynapsus is well-aligned with Sunovion’s focus on the innovative application of science and medicine to help people with serious medical conditions and complements our robust product pipeline,” added Mr. Tamura. “We have high regard for the Cynapsus team and their work with the APL-130277 program.”
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