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Neurovance Announces Agreement to be Acquired by Otsuka Pharmaceutical
02 / 03 / 2017
CAMBRIDGE, MA - March 2, 2017 - Neurovance, Inc. - a privately-held pharmaceutical company, working to develop a novel approach to help patients with ADHD, attention-deficit hyperactivity disorder - today announced the company has signed a definitive agreement to be acquired by Otsuka Pharmaceutical Co., Ltd. (OPC) (TYO: 4578), a global healthcare company headquartered in Japan with a decades- long commitment to disorders of the central nervous system. Under the terms of the agreement, OPC will pay Neurovance $100 million up front in cash, plus up to $150 million in additional payments contingent on achievement of development and regulatory approval milestones, plus additional future payments contingent on achievement of sales milestones.
Jefferies LLC acted as the exclusive financial advisor to Neurovance.
Centanafadine (CTN), now in advanced clinical trials for ADHD, is one of the first new-generation triple reuptake inhibitors that modulate the activity of norepinephrine, dopamine, and serotonin in a specific ratio to affect a specific result. In a Phase 2B clinical trial, CTN showed improvements in symptoms of adults with ADHD similar to those seen in prior studies with stimulants; however CTN is a non- stimulant, with data suggesting the potential for less risk of abuse.
"The sale of Neurovance to Otsuka Pharmaceutical provides a strong path forward for CTN based on OPC's deep CNS expertise, while delivering substantial value to our investors," said Jeff Bailey, Neurovance Chairman and CEO. "At the same time we are delivering an important asset to Otsuka with our unique approach to ADHD. I especially want to thank our team for helping to bring this opportunity to fruition."
Brian Goff, Chief Operating Officer added, "CTN has the potential to address significant unmet medical needs for people with ADHD, where there is a need
for new, innovative alternatives to the stimulants in use today. We are pleased that this acquisition secures continued development of CTN, offers new opportunities for the ADHD community and expands CNS leadership for OPC."
ADHD is unique among the mature pharmaceutical markets. According to a September 2016 report by the consulting firm Global Data, the ADHD market is expected to reach US $13.9B by 2024 across seven major markets. This includes the US, France, Germany, Italy, Spain, the U.K. and Japan, and is based on a compound annual growth rate of 8.5% between 2014 and 2024.
The transaction is expected to close in the second quarter of 2017, subject to customary closing conditions.
About Neurovance, Inc.
Headquartered in Cambridge, MA, Neurovance is a clinical stage neuroscience-focused company.
Hypothesis-driven, proprietary research at Neurovance discovered and developed centanafadine (CTN), a triple reuptake inhibitor that represents a novel approach to help adults and children with ADHD, Neurovance is funded in a venture capital investment by Novartis Venture Fund, Venture Investors, Tekla Capital Management, GBS Venture Partners, State of Wisconsin Investment Board (SWIB) and Timothy J. Barberich.
Contacts:
Media: Initiate PR
Stephen Gendel, 310-776-7439