TEL AVIV Jan 21 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
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 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.