Acorda offers $363M to acquire Finnish biotech company
Acorda Therapeutics Inc., one of Westchester County”™s leading biotech employers, will pay approximately $363 million in a cash deal to acquire a Finnish biotech company developing drug treatments for Parkinson”™s disease.
Acorda will pay the equivalent of $25.60 per share in U.S. dollars to acquire Biotie Therapies Corp., the company said in a press release.
Headquartered in Ardsley, Acorda develops and markets drugs for patients with multiple sclerosis and other neurological disorders. Ron Cohen, Acorda”™s founding president and CEO, said the pending acquisition “positions Acorda as a leader in Parkinson”™s therapeutic development, with three clinical-stage compounds that have the potential to improve the lives of people with Parkinson”™s.”
Both companies”™ stock shares are publicly traded on the Nasdaq exchange. Acorda stock on Jan. 19, when the deal was announced, opened at $40.05 per share and closed at $37.55 per share.
The acquisition, expected to be completed in the third quarter this year, has been unanimously approved by boards of directors of both companies, according to Acorda. It will be funded in part by proceeds from Acorda”™s private placement of $75 million of common stock this month.
Headquartered in Turku, Biotie specializes in products for neurodegenerative and psychiatric disorders. The company has developed a drug for alcohol dependence that is marketed by its partner in Europe. Its clinical operations are based in South San Francisco, Calif.
Acorda officials said the Ardsley company plans to maintain the South San Francisco location and retain Biotie staff there and is weighing the long-term future of Biotie”™s headquarters in Finland.
Acorda in the deal will obtain worldwide rights to tozadenant, an orally administered drug used as an adjunct to treatment regimens for patients with Parkinson disease to reduce average daily off times, periods when Parkinson”™s sufferers have greater difficulty of movement. The drug is in phase three clinical trials on humans.
Acorda also will obtain global rights to Biotie”™s SYN 120, an orally administered drug for patients with Parkinson-related dementia. Acorda officials said the drug is in phase two clinical development with support from the Michael J. Fox Foundation.
Cohen said tozadenant is an adenosine A2a receptor antagonist, one of what he said “may be the first new class of drug approved for the treatment of Parkinson”™s in the U.S in over 20 years.” He said about 350,000 people with Parkinson”™s in the U.S. experience the “off” periods for which tozadenant “could provide a much-needed treatment option.”
“Tozadenant is a compelling opportunity with potential market exclusivity to 2030,” Cohen added. Data collected in phase two trials of the drug “were highly statistically significant and clinically meaningful.”
Acorda”™s founder said the company aims to file a New Drug Application for tozadenant with the U.S. Food and Drug Administration by the end of 2018.
