Acorda Therapeutics Inc. (Nasdaq: ACOR) is buying Civitas Therapeutics for $525 million in cash.
Chelsea, Massachusetts-based Civitas focuses on developing and commercializing medications for people with Parkinson's disease.
Acorda, headquartered in Ardsley, New York, is a biotechnology company that develops medications for people with neurological disorders. The company sells three drugs approved by the U.S. Food & Drug Administration: Ampyra, a treatment for multiple sclerosis; Anaflex Capsules, for spasticity; and Qutenza, for pain associated with neuralgia.
The deal gives Acorda worldwide rights to Civitas’ CVT-301, a Phase 3 treatment candidate for Parkinson's disease, and to Arcus, a pulmonary delivery technology that is being studied in connection with treatments acquired from Civitas. Acorda will also gain Civitas' manufacturing facility in Chelsea.
Sales from CVT-301 are expected to exceed $500 million, according to Ron Cohen, Acorda's CEO. Acorda expects to complete another trial and then file for regulatory approval in the U.S. by the end of 2016.
MTS Health Partners LP and Lazard acted as Acorda's financial advisers, while Cadwalader, Wickersham & Taft LLP provided legal advice. Kirkland & Ellis LLP advised MTS and Lazard. J.P. Morgan and Bank of America Merrill Lynch served as Civitas' financial advisers, and Ropes & Gray LLP acted as legal counsel.
Other recent pharmaceutical deals include Roche Holding AG's acquisition of InterMune Inc. for $8.3 billion, announced in August, http://www.themiddlemarket.com/news/healthcare/roche-to-buy-intermune-for-83b-adding-lung-drug-251898-1.html and Pfizer Inc.'s $635 million deal for Baxter International Inc.'s marketing vaccines, announced in July. http://www.themiddlemarket.com/news/healthcare/pfizer-pays-635-million-for-vaccines-251378-1.html