Neurovance accepts takeover bid from Otsuka

Privately-held US firm Neurovance, which is focused on attention-deficit hyperactivity disorder (ADHD) and related disorders,  has signed a definitive agreement to be acquired by Japanese drug major Otsuka Pharmaceutical (TYO: 4578)’

Under the terms of the agreement, Otsuka will pay Neurovance $100 million up front in cash,plus up to $150 million in additional payments contingent on the achievement of development and regulatory approval milestones, plus additional future payments contingent on achievement of sales milestones. The transaction is expected to close in the second quarter of 2017, subject to customary closing conditions.

Neurovance is based in Cambridge, Massachusetts, and was established as a spin-off from Euthymics Bioscience in 2011.