Acorda Therapeutics to Acquire Civitas Therapeutics for $525 Million

Acorda Therapeutics, Inc., a biopharmaceutical company, has agreed to acquire Civitas Therapeutics, a privately held biopharmaceutical company, for $525 million in cash. Acorda will obtain worldwide rights to CVT-301, a Phase III drug candidate for OFF episodes of Parkinson's disease (PD). The acquisition also includes rights to Civitas' proprietary ARCUS pulmonary delivery technology and manufacturing facility with commercial-scale capabilities based in Chelsea, Massachusetts.

CVT-301 is a system comprised of a dry-powder L-dopa formulation that is contained within blister-packed capsules and administered via a proprietary, pocket-size, reusable inhaler. CVT-301 can provide rapid delivery of L-dopa in conjunction with a patient's optimized oral L-dopa regimen. Oral levodopa (L-dopa) is the current standard of care for PD. CVT-301 seeks to address challenges in dosing regimens for achieving consistent drug levels within a therapeutic range. This can lead to unexpected and rapid return of PD symptoms, referred to as OFF episodes.

The Phase III study for treatment of OFF episodes in people with PD is expected to begin enrolling in early 2015 and if successful, a filing for regulatory approval in the United States is expected by the end of 2016. Accorda estimates that US sales of CVT-301, contingent on regulatory approval, could exceed $500 million.

Of the total consideration of the proposed acquisition, $35 million will be used to pay costs related to a Civitas change-in-control. Subject to customary closing conditions, the acquisition is expected to be completed in the fourth quarter of 2014.

Source: Acorda Therapeutics

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