ALISO VIEJO, Calif. — Avanir Pharmaceuticals Inc. has entered into an agreement to be acquired by Otsuka Pharmaceutical Co. Ltd. in a deal valued at $3.5 billion.
Avanir said Tuesday that the acquisition ransaction, for $17 per share in cash, has been unanimously approved by the boards of directors of both companies and that Otsuka will launch a tender offer within 10 business days to buy all outstanding shares of Avanir.
Plans call for Avanir to continue to operate under its current structure as an independent subsidiary of Otsuka America Inc. when the transaction is completed. Avanir said it will partner with Otsuka in the United States to further enhance its development and commercialization efforts in central nervous system-related disorders.
"I am extremely excited to see these two organizations come together," stated Keith Katkin, president and chief executive officer of Avanir. "Together, our organizations will be able to more rapidly develop and commercialize needed medications for patients around the world."
The closing of the tender offer will be subject to the tender of a majority of Avanir’s shares outstanding and other customary closing conditions. The transaction is expected to close in the first quarter of 2015.
"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," commented Otsuka Pharmaceutical president and representative director Taro Iwamoto. "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. We admire and respect Avanir’s innovation, vision and execution and want to continue to grow together."
