- Title: Mitsubishi Tanabe Pharma to buy Israel's Neuroderm for $1.1 bln
- Date: 24th July 2017
- Summary: REHOVOT, CENTRAL ISRAEL (JULY 24, 2017) (REUTERS) EXTERIORS OF NEURODERM OFFICES IN CENTRAL ISRAEL BUILDING FROM INSIDE VARIOUS OF EMPLOYEES ENTERING OFFICES, LOGO OF NEURODERM ON DOOR VARIOUS OF EMPLOYEES WORKING EMPLOYEES TALKING VARIOUS OF EMPLOYEES WORKING EMPLOYEES HUGGING EMPLOYEES TALKING AT OFFICES OF NEURODERM
- Embargoed: 7th August 2017 12:48
- Keywords: Japan's Mitsubishi Tanabe Pharma Corp Israel's Neuroderm drug maker $1.1 bln deal
- Location: REHOVOT, ISRAEL
- City: REHOVOT, ISRAEL
- Country: Israel
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA0016R2U7PP
- Aspect Ratio: 16:9
- Story Text: Japan's Mitsubishi Tanabe Pharma Corp has agreed to buy Israeli drug maker Neuroderm for $1.1 billion in cash as part of a strategy to grow its business in the United States.
The Japanese drugmaker said on Monday (July 24) it was particularly attracted by Neuroderm's Parkinson's disease drug that is in advanced clinical trials in the United States and Europe and is expected to go on sale in the 2019 financial year.
It said the deal was intended to help it "achieve its U.S. sales target of 80 billion yen" ($722 million) by its 2020 financial year.
The deal will be the largest ever purchase of an Israeli firm by a Japanese company, surpassing internet retailer Rakuten Inc's $900 million acquisition of chat app Viber in 2014. It will also be the largest acquisition of an Israeli pharmaceutical company.
Mitsubishi Tanabe Pharma will pay $39 for each Neuroderm share, a premium of about 17 percent to its Friday close. The deal has the backing of Neuroderm's board and is expected to close in the fourth quarter of 2017 following shareholder and regulatory approvals.
The price is also a 79 percent premium to Neuroderm's share price on June 9, before the stock began climbing on media reports the company was considering a sale.
Neuroderm's Nasdaq-listed shares were up 15.2 percent at $38.25 in pre-market trade.
- Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2017. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None