Teva offers $3.2 billion for Auspex Pharma, to strengthen CNS position

Israel drugmaker Teva Pharmaceutical Industries (NYS: TEVA) has entered into a definitive merger agreement to acquire Auspex Pharmaceuticals (Nasdaq: ASPX), a late-clinical stage USA-based biopharmaceutical company, aimed at expanding Teva’s presence in the central nervous system disorders sector.

Teva will commence a tender offer for all of the outstanding shares of Auspex at $101.00 per share in cash, representing total consideration of about $3.2 billion in enterprise value and around $3.5 billion in equity value. Teva's shares climbed 1.7% in premarket trade. Shares in Auspex closed up 35 at $70.91 on Friday and rocketed 41.5% to $100.32 shortly after markets opened this morning.

This transaction, which is set to close in mid-2015, is expected to enhance Teva’s revenue and earnings growth profile and strengthen its core central nervous system (CNS) franchise with the addition of Auspex’ portfolio of innovative medicines for people who live with movement disorders. The transaction has been unanimously approved by the boards of both Teva and Auspex, and key shareholders of Auspex have indicated their support for the deal.