Sunovion to Acquire Cynapsus TherapeuticsBy
Sunovion Pharmaceuticals, a biopharmaceutical company headquartered in Marlborough, Massachusetts, has agreed to acquire Cynapsus Therapeutics, a Toronto-based specialty central nervous system pharmaceutical company focused on Parkinson’s disease, for $40.50 per share in cash in a deal that values Cynapsus at approximately $624 million.
With the acquisition, Sunovion would acquire Cynapsus' late-stage product candidate, APL-130277, a new formulation of apomorphine, a dopamine agonist, in Phase III development as a sublingual thin film for the on-demand management of “off” episodes associated with Parkinson's disease.
The deal has received unanimous approval by both companies' board of directors. Assuming receipt of all required regulatory approvals, the parties expect to close the transaction in the fourth quarter of 2016. The companies expect to close the transaction following required security-holder, court, and regulatory approvals and satisfaction of certain other customary closing conditions.
Upon closing of the proposed transaction, shareholders of Cynapsus will receive $40.50 per common share in cash, and holders of warrants and stock options will receive a cash payment equal to the difference between $40.50 and the exercise price of such warrant or stock option.
The transaction will require approval of at least two-thirds of the votes cast by Cynapsus shareholders and warrant holders voting together as a single class at a special meeting of such security holders of Cynapsus. Voting and support agreements in support of the transaction have been signed by all Cynapsus directors and officers as well as the company's largest shareholder, representing in the aggregate approximately 18.33% of the Cynapsus securities entitled to vote to approve the transaction.
Source: Sunovion Pharmaceuticals