Japan’s Mitsubishi Tanabe Pharma (MTPC) has entered a new definitive agreement to acquire all of the outstanding shares of Israel-based pharmaceutical company NeuroDerm for $1.1bn in cash.
NeuroDerm is a clinical-stage pharmaceutical company that develops new formulation technology and drug-device combinations for Parkinson’s disease.
The acquisition will be carried out through a reverse triangular merger, under which MTPC’s wholly owned merger subsidiary will merge into NeuroDerm.
The MTPC merger subsidiary has only been set up in Israel, with an aim to carry out the entire purchase process.
After completion of the acquisition, NeuroDerm will become the surviving entity and will operate as the wholly owned subsidiary of MTPC.
ND0612 is the lead product candidate of the Israeli company, which has currently commenced the Phase III clinical trials for the product in the US and Europe.
It can be used for the treatment of patients with advanced stage Parkinson’s disease, owing to the product’s capability in controlling blood levels of levodopa that is important to treat the disease.
In addition, ND0612 can be administered on patients for whom oral levodopa proves to be no longer effective in the control of motor complications.
NeuroDerm CEO Dr Oded Lieberman said: “We believe that this transaction will yield important benefits for NeuroDerm’s shareholders and the Parkinson’s disease patients that urgently need new therapies.
“MTPC has demonstrated development and commercialisation expertise in the field of neurology and we are confident that the combination of their resources and the robust data supporting ND0612, our Phase III Parkinson’s disease product candidate, will help make this important new therapy available as broadly and rapidly as possible.”
NeuroDerm is expected to launch the new treatment in the fiscal year 2019.
The transaction is subject to customary conditions, including approval from the shareholders of NeuroDerm, in addition to the receipt of applicable regulatory approvals.