Mitsubishi Tanabe Pharma Corp. is buying Medicago Inc. (TSX: MDG) in a deal valued at $357 million.

The purchase price works out to $1.16 per share in cash. Medicago’s shares closed at $0.95 on the Toronto Stock Exchange on July 11, before the deal was announced. The deal also includes debt assumption.

Quebec-based Medicago is a biopharmaceutical company that develops vaccines, including influenza, rabies and rotavirus. The company also has an office in Durham, N.C.

Mitsubishi Tanabe, headquartered in Tokyo, specializes in research, development and marketing of pharmaceutical products for autoimmune diseases, diabetes and kidney disease.

TD Securities Inc. acted Medicago’s financial adviser, while McCarthy Tetrault LLP was the company’s legal counsel. Mitsubitishi Tanabe’s financial adviser was Goldman Sachs, and Stikeman Elliott LLP and Ropes & Gray LLP provided legal advice. 

Other recent pharmaceutical deals include Teva Pharmaceutical Industries Ltd.'s (NYSE: TEVA) acquisition of MicroDose Therpeutx for up to $165 million and Salix Pharmaceutical Ltd.'s (NYSE: SLXP) deal for medical intellectual property assets.