Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) announced today that they had acquired NuPathe Inc (NASDAQ:PATH) for $144 million and possible future royalties. According to sources, the bidding for NuPathe and their recently-approved migraine patch treatment was fierce, with Teva eventually outbidding original suitor Endo Health Solutions Inc (NASDAQ:ENDP) to land the prize.
NuPathe Inc (NASDAQ:PATH)’s novel Zecuity migraine headache treatment was approved in the second half of 2013. Zecuity is a battery-powered patch that delivers sumatriptan intradermally over a four-hour period, preventing migraine-related headaches and nausea. The patch sends a measured flow of ionized particles of sumatriptan through the skin, making dosage of the drug much easier than through other forms of administration. Zecuity performed significantly better than placebos at reducing migraine pain and nausea in multi-year Phase III clinical trials involving more than 800 patients. The new Zecuity patch is expected to be a popular treatment alternative for migraine sufferers.
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Details of the deal between NuPathe and Teva Pharmaceutical
Tel Aviv-based Teva Pharmaceutical Industries Ltd (ADR)(NYSE:TEVA)’s statement noted that NuPathe Inc (NASDAQ:PATH) holders will receive $3.65 a share in cash in addition to future considerations. The $144 million price tag is almost 60% greater than NuPathe’s share price Dec. 13, the last trading day before the announcement of the Endo agreement. NuPathe shareholders could also be due as much as $3.15 a share in additional royalty payments over the next few years if the new Zecuity treatment meets agreed-upon sales goals.
NuPathe Inc (NASDAQ:PATH) also paid a $5 million breakup fee to Pennsylvania-based Endo Health Solutions Inc (NASDAQ:ENDP) in order to end their original agreement and accept Teva’s more generous buyout offer.
In a statement released today by Teva Pharmaceutical Industries Ltd (ADR)(NYSE:TEVA), Mike Derkacz, vice president and general manager of Teva’s central nervous system business, wrote, “We believe that Zecuity is a great fit within our existing U.S. CNS business unit, with near-term sales and significant commercial potential.”