Sunovion Pharmaceuticals Inc. is acquiring Cynapsus Therapeutics Inc. (Nasdaq: CYNA) (TSX: CTH) for about $624 million, as Sunovion moves to expand in neurology and other key therapeutic areas. As a part of the deal, Sunovion will acquire a treatment under development for Parkinson’s disease.
Sunovion, based in Marlborough, Massachusetts, is a global biopharmaceutical company focused on treatments for psychiatric, neurological and respiratory conditions. The company is a subsidiary of Sumitomo Dainippon Pharma Co., a top 10 pharmaceutical company in Japan. Cynapsus is a specialty central nervous system pharmaceutical company based in Toronto. The companies expect to close the deal in the fourth quarter.
Recent pharma deals have included Pfizer Inc. (NYSE: PFE) agreeing to buy Medivation Inc. (Nasdaq: MDVN) and its prostate cancer treatment; Bristol-Myers Squibb Co. (NYSE: BMY) acquiring Cormorant Pharmaceuticals and its cancer therapy research; and GTCR, the private equity firm, joined up with pharmaceutical industry veteran Ed Fiorentino to start TerSera Therapeutics to focus on making acquisitions in the industry.
BofA Merrill Lynch is the financial adviser for Cynapsus on the deal, with Borden Ladner Gervais LLP and Troutman Sanders LLP serving as legal advisers. Stifel, Nicolaus & Co. Inc. is financial adviser and Fasken Martineau DuMoulin LLP serves as a legal adviser to the Special Committee of Cynapsus. Nomura Securities International Inc. is the financial adviser to Sunovion and Goodmans LLP, Reed Smith LLP and Gibbons PC are legal advisers to Sunovion.