Israel's Teva to buy NuPathe for $144 million
Israeli drug manufacturer Teva Pharmaceutical Industries has agreed to pay about $144 million for U.S.-based NuPathe Inc. If everything goes according to plan, the transaction will be wrapped up next month.
Announcing the definitive purchase agreement, Teva said that stockholders in NuPathe would also receive up to $3.15 per share in additional cash payments if NuPathe's Zecuity drug hits pre-agreed net sales thresholds. Zecuity is used to treat acute migraine and migraine-related nausea and comes in the form of a patch. So far, it remains the only prescription migraine patch granted approval by the FDA and is the first treatment of this kind.
Pennsylvania-based NuPathe specializes in therapeutics for diseases of the central nervous system (CNS), including neurological and psychiatric disorders. By adding Zecuity to its portfolio, Teva is boosting its CNS specialty business. The Israeli company will also gain access to proprietary technology that includes NuPathe's transdermal delivery system.
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Commenting on the deal, Teva VP Mike Derkacz said that Zecuity would fit seamlessly into Teva's existing CNS business in the United States. The drug has significant commercial potential and prospects for near-term sales are good, Derkacz added.
NuPathe's board has unanimously approved the deal but other conditions have to be met before the transaction is finalized. These include the tender of a majority of NuPathe's shares, as well as the expiration or termination of the waiting period required by U.S. competition laws.