Firm will provide commercialization infrastructure in the U.S. and Canada for Japanese-based DSP.
Dainippon Sumitomo Pharma (DSP) is willing to pay $2.6 billion to take over Sepracor. The purchase will give the Japanese DSP firm a stronger foothold in the U.S. and Canada. Sepracor brings with it commercial operations in both these countries and reported total revenues of approximately $1.3 billion during 2008.
DSP’s offer values Sepracor at $23 per share, representing a 27.6% premium over the firm’s closing price on September 1. Sepracor’s value increased about 26% yesterday to reach $22.8 per share by the end of trading.
DSP expects that upon completion of the Sepracor acquisition, it will obtain access to a fully integrated U.S.- and Canadian-based pharmaceutical platform with an experienced and successful management team and employee base. Particularly, it will be able to leverage Sepracor’s expertise to develop and commercialize lurasidone, DSP’s Phase III candidate for schizophrenia.
Sepracor’s portfolio of marketed drugs comprises therapies for central nervous system (CNS) and respiratory disorders. Products in the U.S. include Lunesta for insomnia in adults, Xopenex Inhalation Solution and Xopenex HFA® for bronchospasm, Brovana Inhalation Solution for bronchoconstriction in patients with chronic obstructive pulmonary disease (COPD), Omnaris Nasal Spray for allergic rhinitis, and Alvesco HFA Inhalation Aerosol for asthma.
Sepracor’s commercial organization in the U.S. reportedly includes about 1,200 sales professionals who concentrate on primary care physicians and specialists. Sepracor’s wholly owned subsidiary, Sepracor Pharmaceuticals, markets additional products in Canada that are focused in the cardiovascular, CNS, pain, and infectious disease therapeutic areas.
Similarly, Sepracor clinical pipeline consists of drug candidates at various stages of development for allergic rhinitis, COPD, depression, insomnia, ADHD, pain, and asthma. These programs were built through internal efforts and deals with other firms. Its lead candidate, Stedesa for epilepsy, has been submitted to the FDA for review.
Upon closing of the transaction, Sepracor will become a wholly owned subsidiary of Dainippon Sumitomo Pharma America Holdings. It will continue its operations in Marlborough, MA, and Canada. Sepracor will retain its name, branding, and intellectual property rights.