Mar 3, 2017
In an effort to expand the portfolio of central nervous system-based therapies, Otsuka Pharmaceutical will acquire Neurovance Inc. in a transaction that could be worth as much as $250 million.
As per the deal, Otsuka subsidiary Otsuka America Inc. will pay $100 million at closing and as much as $150 million based on approval and sale milestones tied to the continuing development of centanafadine, a treatment from Neurovance for attention-deficit hyperactivity disorder, or ADHD. Neurovance has completed two phase 2 clinical trials and anticipates moving centanafadine into phase 3 trials.
Tokyo-based Otsuka has a global scale, with 158 associated companies focusing on providing therapies for mental health, in addition to under-addressed diseases like tuberculosis. The company has 31,000 employees worldwide and recorded sales of $11 billion last year. The company also has an operation dedicated to nutraceutical products in addition to its pharmaceutical development and acquisition focus. Otsuka is best known for its schizophrenia treatment Abilify Maintena and its vitamin brand Nature Made.
Otsuka President Tatsuo Higuchi said in a statement that the Neurovance deal fits with his company adding assets in the cardio-renal and oncology therapeutic areas as well as neuroscience.