Teva strengthens CNS franchise with $3.5bn acquisition of Auspex Pharma

The Irish firm will pay $101 per share to acquire Auspex’s portfolio of new medicines for people who live with movement disorders.

The boards of directors from both the companies have unanimously approved the transaction.

Currently, Auspex does not have a product on the market and its lead product candidate SD-809 (deutetrabenazine) is aimed at treating involuntary movement associated with the genetic disorder Huntington’s disease (HD).

Being developed using Auspex’s deuterium technology platform, the new product is indicated to treat chorea associated with HD, tardive dyskinesia and Tourette syndrome.

Teva president and CEO Erez Vigodman said: "The acquisition of Auspex is a significant step in strengthening Teva’s leadership position in CNS and advances us into underserved movement disorder markets.

"We look forward to accelerating the development and commercialization of the Auspex portfolio based on our infrastructure, capabilities and strong commercial and R&D position in CNS.

"As we have outlined recently, one of our key priorities for 2015 is to support Teva’s mid to long-term growth and create value for our shareholders with business development opportunities that are closely aligned with our core therapeutic areas."

Last year, Auspex had reported positive results from its Phase III trial for SD-809 in HD, with plans to submit a new drug application (NDA) for this indication by mid-2015.

The US Food and Drug Administration (FDA) has also granted orphan drug designation for SD-809 to treat HD and the company expects regulatory approval and commercial launch for this indication in 2016 in the US.

Subject to various customary conditions, Teva expects to close the transaction in mid-2015.

Image: Teva Factory in Har Hotzvim, Jerusalem, Israel. Photo: courtesy of ????