Otsuka of Japan acquires Avanir Pharmaceuticals for $3.5 Billion

Otsuka of Japan acquires Avanir Pharmaceuticals for $3.5 Billion

Otsuka of Japan acquires Avanir Pharmaceuticals for $3.5 Billion

Otsuka Holdings, the Japanese pharmaceutical titan, announced to acquire a developer of treatments for Parkinson’s and Alzheimer’s and other neurological diseases for $3.54 Billion.

 The acquisition one of many deals in the pharmaceutical indsutry, whre companies doesn’t able to create own blockbuster drugs.

 “Avanir’s creativity and proven execution on drug discovery and development for largely unexplored medical indications, typified by PBA, represents a hand-in-glove fit with Otsuka’s culture,” said Taro Iwamoto, president of Otsuka Pharmaceutical, the Otsuka Holdings unit that specializes in prescription drugs.

 In April, Otsuka lost protection for Abilify, widely used drug for schizophrenia treatment.

 Otsuka said it would pay in cash $17 for Avanir’s share, it’s 13 percent premium to Avanir’s  closing price on Monday. This year rose Avanir share more than four times.

  “The two products Avanir has are unique, exciting and fit with Otsuka,’’ said Yasuhiro Nakazawa, a health-care analyst at SMBC Nikko Securities said by phone. ’’They will help Otsuka have sustainable growth after Abilify.’’ added.

 Its strategy is concentration on specific symptoms of neurological affliction like Nuedexta for treatment of crying and laughing, which patients haven’t under control, PBA used for Parkinson, Parkinson and multiple sclerosis treatment. Otsuka also makes Pocari Sweat soft drinks and Soyjoy nutrition bars.

 “ From our experience, we value creativity which can be generated from cultural diversity and different ways of thinking,” Mr. Higuchi said. “I learned it from the late Chairman Otsuka,” he added, a reference to longtime executive Akihiko Otsuka, who died at the age of 77 last Friday.

 Otsuka was advised by Goldman Sachs, while Centerview Partners advised Avanir.

 Mr. Stakebay says:

 This deal helps Otsuka to access  to overseas markets, but it chances upon problems. After six years from acquiring Ranbaxy stake by Daiichi, its stake sold. After the deal, Avanir will become unit of Otsuka America Inc to improve its central nervous system-related disorders development and marketign efforts.

 

President and CEO of Otsuka Holdings …TATSUO HIGUCHI…(2008 – present)…. $ 1 193 350 (2013)

President and CEO of Avanir Pharma …….KEITH A. KATKIN…(2007 – present)…..$ 1 886 374 (2013)

 

OTSUKA OF JAPAN

AVANIR PHARMACEUTICALS

Revenue

$ 14.115 Billion (2013)

$ 75.36 Million (2013)

Operating income

$ 1.931 Billion (2013)

$ – 71.43 Million (2013)

Net income

$ 1.467 Billion (2013)

$ – 75. 47 Million (2013)

Total assets

$ 19.709 Billion (2013)

$ 76.079 billion (2013)

Total Equity

  $ 14.678 Billion (2013)

$ 18.471 Billion (2013)

Employees

28 288 (2013)

300 (2013)

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