Otsuka Pharma to buy USA's Avanir for $3.5 bn

Japan’s Otsuka Pharmaceutical Co Ltd has entered into a definitive agreement to acquire US-based Avanir Pharmaceuticals Inc, the US-based biopharmaceutical company focussing on innovative medicines for patients with central nervous system (CNS) disorders, for $3.5 bn.The transaction is expected to close in the first quarter of 2015.
 
Upon completion of the deal, Avanir will continue to operate under its current structure as an independent subsidiary of Otsuka America Inc. Avanir will partner with Otsuka in the US to further enhance its development and commercialisation efforts in CNS-related disorders.
 
Taro Iwamoto, president and representative director, Otsuka Pharmaceutical, said, “As we bring together Otsuka's experience and business track record in the area of mental illnesses with Avanir's strengths in neurologic diseases, we believe that we can evolve into a truly global CNS pharmaceutical company. Avanir's creativity and proven execution on drug discovery and development for largely unexplored medical indications, typified by PBA, represents a hand-in-glove fit with Otsuka's culture."
 
Keith Katkin, president and chief executive officer of Avanir Pharmaceuticals, added, “Together, our organisations will be able to more rapidly develop and commercialise needed medications for patients around the world."
 
Otsuka Pharmaceutical develops and manufactures innovative products, with a focus on pharmaceutical products for the treatment of diseases and nutraceutical products for the maintenance of everyday health.