Sunovion Pharmaceuticals to buy Canada's Cynapsus Therapeutics for $624 mn

Sunovion Pharmaceuticals Inc, a subsidiary of Japan's Dainippon Sumitomo Pharma Co Ltd, yesterday struck a deal to buy Canada's Cynapsus Therapeutics Inc for about $624 million in order to expand and diversify its portfolio in key therapeutic areas, including neurology.

Sunovion Pharmaceuticals IncUnder the terms of the deal, Sunovion  has offered to pay $40.50 per share in cash, a  premium of 123 per cent based on Cynapsus' average closing price for the last 20 trading days.

The deal will give Sunovion Cynapsus' phase three clinical trial drug candidate, APL-130277, an apomorphine to treat off episodes associated with Parkinson's disease.

Sunovion, based in Massachusetts, has nine approved therapies for treating respiratory conditions and central nervous system disorders.

Last year, the US Food and Drug Administration approved its Aptiom tablet for the treatment of a certain a type of epilepsy.

''Parkinson's disease is a chronic, progressive neurodegenerative disease that affects more than four million people around the world, and there is a significant need for new options to treat the OFF episodes associated with it,'' said Nobuhiko Tamura, chairman and CEO of Sunovion.

''We believe that APL-130277 is a novel late-stage candidate with the potential to make a real difference for patients and their families,'' he added.

The deal, which is expected to close in the fourth quarter, has been approved by the board of both companies.