Otsuka to acquire Mindset Pharma

Japanese mid-size drugmaker Otsuka Pharmaceuticals (TYO: 4578) has entered into a definitive arrangement agreement to acquire Toronto, Canada-based Mindset Pharma (CSE: MSET), with the news sending the latter’s shares up 10.8% to C$0.72.

Mindset Pharma is a drug discovery and development company focused on creating optimized and patentable best-in-class innovative next-generation psychedelic medicines to treat neurological and psychiatric disorders with unmet needs.

Otsuka will acquire all of the outstanding shares of Mindset by way of a statutory plan of arrangement for around C$80 million (~$59 million) in an all-cash transaction, which is expected to close on or around October 19, 2023, subject to the satisfaction (or waiver) of a number of conditions precedent, including approval by the Supreme Court of British Columbia.