Acorda To Acquire Civitas Therapeutics For $525M
Acorda Therapeutics announced that it has agreed to acquire Civitas Therapeutics for $525 million. The agreement opens the door for Acorda to Civitas’ CVT-301, an investigational treatment for Parkinson’s disease currently undergoing Phase 3 development.
CVT-301 is a supplemental therapeutic for patients with PD who experience symptoms such as muscle stiffness and inability to move during treatment. Civitas expects to begin enrollment for a Phase 3 study early next year and to file for U.S. approval by late 2016. The company initially stated that it hoped to raise $80 million by going public in order to fund Phase 3 trials for the drug. Civitas has suffered a loss of about $45 million in the last two years.
The deal effectively scratches off Civitas’ plans to go public. Aside from acquiring CVT-301, Acorda will also gain rights to Civitas’ Massachusetts manufacturing facility and proprietary pulmonary delivery technology.
Ron Cohen, Acorda's president and CEO, said, “Both companies share a passion for developing novel therapies that can restore function to people with neurological diseases. We also see substantial synergies between our capabilities, people, and pipelines. The acquisition adds an exciting product candidate to Acorda's pipeline that addresses a significant unmet need in Parkinson's disease.”
Acroda has mostly drawn its profit from Ampyra, a treatment for multiple sclerosis patients that helps them to maintain their ability to walk. CEO Cohen has announced the company’s intent to bolster its performance through transacting deals such as Civitas’ acquisition. “We also recognize that we need to be very active on the business development front and leverage the capabilities and the infrastructure that we’ve already built out in the Company so that that is being utilized most efficiently to create value,” said Cohen at a healthcare conference with investors earlier this month.
Cohen said that he anticipates CVT-301 to bring in more than $500 million in annual sales after it has completed clinical development. Acorda’s shares climbed almost 23 percent following the announcement.
The transaction is expected to be completed in the fourth quarter of 2014.