Teva Pharmaceutical Industries will acquire NuPathe Inc for $3.65 per share in cash, or $144 million, to expand its portfolio of medicines to treat conditions affecting the central nervous system (CNS).
In addition to the upfront cash payment, NuPathe shareholders will receive rights to get additional cash payments of up to $3.15 per share if specified sales of NuPathe's migraine treatment Zecuity are achieved over time, Israel-based Teva said on Tuesday.
NuPathe said it terminated its takeover deal with Endo Health Solutions Inc, saying Teva's offer represented a premium of about 28 percent over the upfront cash payment offered by Endo and equal amount of milestone-based payments.
Zecuity is the only prescription migraine patch approved by the U.S. Food and Drug Administration for the acute treatment of migraine in adults. It is a disposable, single-use, transdermal patch that actively delivers sumatriptan, the most widely prescribed migraine medication, through the skin.
It provides relief of both migraine headache pain and migraine-related nausea.
Teva, the world's largest maker of generic drugs, will now have access to NuPathe's proprietary technology including its transdermal delivery system for patients.
"We believe that Zecuity is a great fit within our existing U.S. CNS business unit, with near-term sales and significant commercial potential," said Mike Derkacz, general manager of Teva CNS.
Teva earlier this month named industry outsider Erez Vigodman to lead a revival of company, with a push beyond its ailing core business into branded drugs.
The contingent cash payments include $2.15 per share payable upon net sales of Zecuity reaching at least $100 million in any four consecutive quarters, on or prior to the ninth anniversary of the date of the first commercial sale.
Another $1.00 per share will be paid upon net sales of at least $300 million in any four consecutive quarters, on or prior to the ninth anniversary of the date of the first commercial sale of Zecuity.
The deal is expected to be completed in February.
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