Otsuka to Acquire ADHD Company in $250-Million Deal
Otsuka Pharmaceutical has agreed to acquire Neurovance, a Cambridge, Massachusetts-headquartered clinical-stage pharmaceutical company focused on attention-deficit hyperactivity disorder (ADHD) and related disorders, in a $250-million deal.
Under the agreement, Otsuka America, a subsidiary of Otsuka Pharmaceutical, is to provide an estimated $100 million in upfront payments at closing, up to $150 million in additional payments contingent on achievement of development and approval milestones, and future additional payments contingent on achievement of sales milestones.
Following the closing of the transaction, Neurovance will be an indirect, wholly-owned subsidiary of Otsuka Pharmaceutical. The transaction is expected to close in the second quarter of 2017, subject to customary closing conditions.
The acquisition boosts Otsuka’s central nervous system therapy area, in which Otsuka is developing products that can also address issues such as patient compliance or side effects from existing medications. Neurovance is developing centanafadine, a non-stimulant drug candidate for treating ADHD. Centanafadine is a triple reuptake inhibitor that modulates norepinephrine, dopamine, and serotonin reuptake with the intent of improving focus, attention, and specific higher level cognitive skills in patients with ADHD, according to Otsuka. The drug has completed two Phase II clinical trials, including a Phase IIb trial, in ADHD.
Source: Otsuka Pharmaceutical