Sunovion to acquire Cynapsus in a $624 million deal

1 September 2016

Sunovion Pharmaceuticals, a US subsidiary of Japanese pharma company Sumitomo Dainippon (TYO: 4506), has signed a definitive agreement to acquire Canadian drugmaker Cynapsus Therapeutics (TSX: CTH) for $40.50 per share in cash.

The transaction has received unanimous approval by the board of directors of both companies and values Cynapsus at around $624 million. The acquisition will be funded with cash on hand and is expected to close in the fourth quarter of 2016. This agreement reflects Sunovion’s global strategy to expand and diversify its portfolio in key therapeutic areas, including neurology.

Through this transaction, Sunovion would acquire Cynapsus’ product candidate, APL-130277, which is designed to be a fast-acting, easy-to-use, on-demand treatment option for managing OFF episodes associated with Parkinson’s disease (PD).

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