Teva President and CEO, Erez Vigodman
Photo: Reuven Kaputzinski
Teva buying Auspex for $3.2 billion
Israeli pharmaceuticals firm buys San Diego-based Auspex, which is expected to launch a drug it claims will with the genetic disorder Huntington's disease.
Israel's Teva Pharmaceutical Industries Ltd. is buying Auspex Pharmaceuticals for about $3.2 billion in a move to strengthen its position on central nervous system condition treatments.
Jerusalem-based Teva said Monday that it will pay $101 per share, marking a 47 percent premium to San Diego-based Auspex's closing stock price on Friday.
Photo: AFP
Auspex does not yet have a product on the market, but in 2014 it reported susefull stage-3 results for Austedo (SD-809) a drug it claims will help involuntary movement associated with the genetic disorder Huntington's disease. It is expected to get FDA approval by the end of 2016.
Teva is one of the world's largest generic drug developers. It also has a range of specialty medicines, including Copaxone for multiple sclerosis and Azilect for Parkinson's disease. Revenue in 2014 reached $20.3 billion.
"The acquisition of Auspex is a significant step in strengthening Teva's leadership position in central nervous system (disorders) and advances us into underserved movement disorder markets," Teva President and CEO, Erez Vigodman, said in a statement.
Teva expects the buyout of Auspex to start contributing revenue in 2016 with an anticipated launch of Austedo. The acquisition is expected to close in mid-2015.
Shares of Auspex Pharmaceuticals Inc. climbed $29.60, or 41.7 percent, to $100.51 in midday trading Monday while Teva shares rose $1.67, or 2.7 percent, to $63.65.
Auspex has reported losses for the past two years, reporting a $59.6 million loss in 2014, a massive drop for the $15.6 million reported the previous year. Last January the company successfully raised some $190.5 million.
In Febuary 2014 it went public with a $84 million IPO, valued at $270 million; a year later it sold for over 15 times that value.
