Otsuka to acquire Avanir Pharmaceuticals

TOKYO – Otsuka Pharmaceutical has announced an agreement with Avanir Pharmaceuticals in which Otsuka America,, a US subsidiary, acquires Avanir for US$3.5 billion in an all-cash tender offer. The contract was signed on December 2, Japan time.

Biopharmaceutical company Avanir specializes in CNS diseases. It developed and launched NUEDEXTA? (dextromethorphan hydrobromide/quinidine sulfate) 20mg/10mg capsules in the US in February 2011 as the world’s first and only approved treatment for the neurologic disease pseudobulbar affect (PBA). Sales of Nuedexta in the 12-month period from July 2013 through June 2014 were US$94 million, a 50% increase over the prior-year period.

Avanir’s pipeline includes programs in Alzheimer’s disease, Parkinson’s disease, migraine and other CNS indications. The promising new chemical entity AVP-786, with a target indication for agitation

This acquisition is consistent with the Otsuka Group’s investment philosophy: Invest in companies and businesses with which the group can share a common management philosophy, human resources, products and technology to enhance corporate value; and invest with long-term perspective.

The acquisition will bring Otsuka three distinct values: 1) Nuedexta, created to treat the under-recognized, neurologic disease PBA; 2) the late-stage investigational compound AVP-786 in clinical development to treat agitation associated with Alzheimer’s disease; and 3) Avanir’s clinical development and commercial expertise in neurologic diseases, which complements Otsuka’s capabilities in psychiatric diseases.

These will accelerate Otsuka’s existing expansion strategy in the neurologic area, widening the overall CNS portfolio, inclusive of the psychiatric and neurologic areas, supporting both short-and medium-term growth.