Acorda Therapeutics to buy Finland's Biotie Therapies for $363 mn
19 January 2016
US biotechnology company Acorda Therapeutics Inc. today struck a deal to buy Finland's Biotie Therapies for $363 million in cash in order to expand its pipeline in Parkinson's disease therapies.
Under the terms of the friendly deal, Acorda is offering to pay €23.5680 per ADS in cash, or the equivalent of $25.60 per ADS based on an exchange rate of 1.0864 US dollars to euros, which values Biotie at approximately $363 million.
Acorda said that it has availed of $135 million in financing through equity private placement and asset-based loan facility to fund the transaction.
The acquisition will give Acorda the global rights to Phase 3 Parkinson's disease treatment and additional clinical-stage assets and make it a leader in Parkinson's disease therapeutic development.
Acorda will obtain worldwide rights to tozadenant, an oral adenosine A2a receptor antagonist currently in Phase 3 development in Parkinson's disease. In a Phase 2b clinical trial, tozadenant reduced average daily OFF time as an adjunct to treatment regimens including levodopa/carbidopa.
Acorda will also obtain global rights to SYN120, an oral, 5-HT6/5-HT2A dual receptor antagonist for Parkinson's-related dementia, in Phase 2 development with support from the Michael J Fox Foundation.
''Our acquisition of Biotie positions Acorda as a leader in Parkinson's disease therapeutic development, with three clinical-stage compounds that have the potential to improve the lives of people with Parkinson's. Tozadenant, Biotie's most advanced clinical program, is a promising therapy being developed to reduce daily OFF time,'' said Ron Cohen, M.D., Acorda's president and CEO.
''Tozadenant is a compelling opportunity with potential market exclusivity to 2030. The Phase 2 data were highly statistically significant and clinically meaningful. We are targeting an NDA filing by the end of 2018,'' he added.
Turku, Finland-based Biotie Therapies is a biopharmaceutical company focused on developing therapeutics for central nervous system disorders. Its pipeline includes drugs for unmet medical needs in Parkinson's disease and related dementia, other neurodegenerative indications and primary sclerosing cholangitis, an orphan fibrotic liver disease.
In addition, Biotie has developed a product for alcohol dependence that is being commercialized by Lundbeck and is a source of further potential milestone payments and ongoing royalties.
Following the close of the acquisition, Acorda plans to maintain the San Francisco office of Biotie and retain its employees.
Founded in 1995, New York-based Acorda is a biotechnology company focused on developing therapies for neurological disorders.
Acorda has a pipeline of novel neurological therapies addressing a range of disorders, including multiple sclerosis, Parkinson's disease, post-stroke walking deficits, epilepsy and migraine.