Date: 2016-09-01
Type of information: Company acquisition
Acquired company: Cynapsus Therapeutics (Canada)
Acquiring company: Sumitomo Dainippon Pharma (Japan) Sunovion (USA)
Amount: $ 624 million (€ 559 million)
Terms: * On September 1, 2016, Sumitomo Dainippon Pharma announced that its wholly-owned subsidiary Sunovion Pharmaceuticals and Cynapsus Therapeutics have reached an agreement on August 31, 2016 on Sunovion’s acquisition of all of the issued and outstanding common shares and warrants of Cynapsus by cash by way of Plan of Arrangement, which is a method for friendly corporate acquisition that is available under Canadian law.
The acquisition will be implemented in accordance with Plan of Arrangement under Canadian law, and Sunovion will acquire all shares and warrants from the existing shareholders and warrant holders of Cynapsus. All the stock options will be acquired and cancelled by Cynapsus.
The total value for the acquisition representing aggregate amount payable for the acquisition of common shares, warrants and stock options, will be approximately US$ 624 million (US$40.50 per share).
Transaction is expected to be completed by the end of December, 2016, subject to approval by the court and the shareholders and warrant holders of Cynapsus, and the completion of relevant statutory procedures. Nomura Securities International, Inc. serves as an exclusive financial advisor to Sunovion, Bank of America Merrill Lynch, Inc. serves as a financial advisor to Cynapsus and Stifel, Nicolaus & Company, Inc. serves as financial advisor to the Special Committee of Cynapsus.
Details: Sunovion focuses on the Psychiatry & Neurology area as one of focus therapeutic areas and promotes the atypical antipsychotic agent Latuda® and antiepileptic drug Aptiom®. The acquisition of Cynapsus will help to further strengthen and diversify its Psychiatry & Neurology pipeline for offsetting a part of decline in sales as Latuda® loses its exclusivity in 2019. Cynapsus is a specialty central nervous system biotechnology company developing APL-130277. APL-130277 is a sublingual film formulation including apomorphine, a dopamine agonist, which is the only molecule approved for acute, intermittent treatment of OFF episodes associated with Parkinson’s disease , but currently only approved as a subcutaneous injection in the United States. If the ongoing pivotal Phase 3 clinical trials are successful, it is expected that a New Drug Application “NDA” for APL-130277 will be submitted to the FDA during the first half of 2017. A pivotal European clinical program evaluating the safety and efficacy of APL-130277 in PD patients is expected to be initiated late in the fourth quarter of 2016.
Related: CNS diseases Neurological diseases
