Contract Manufacturing / Generic / Large Molecule / Small Molecule

Teva Acquires Auspex Pharmaceuticals; Updates Mylan Proposal

May 05, 2015

Teva Pharmaceutical Industries Ltd. has completed the acquisition of Auspex Pharmaceuticals Inc. through the successful tender offer for all of the outstanding shares of common stock of Auspex at $101 per share in cash, representing total consideration of approximately $3.2 billion in enterprise value and $3.5 billion in equity value. The acquisition is expected to enhance Teva’s revenue and earnings growth profile and strengthen its core central nervous system franchise.

Auspex is a biopharmaceutical company specializing in applying deuterium chemistry to known molecules to create novel therapies with the potential for improved safety and efficacy profiles. Its lead compound is SD-809 (deutetrabenazine) for the potential treatment of chorea associated with Huntington’s disease, tardive dyskinesia, and Tourette syndrome.

“We believe that combining the Auspex portfolio with our strong research and commercialization capabilities will unlock significant value for Teva’s shareholders,” said Erez Vigodman, president and CEO of Teva. “We are proud and excited to continue to work to bring innovative treatments to the underserved movement disorder markets.”

In April, data were presented on topline results of a Phase III study of SD-809 in Huntington’s in a platform presentation at the American Academy of Neurology’s Annual Meeting. The compound has been granted orphan drug status by the U.S. Food and Drug Administration and the NDA is expected to be submitted in the second quarter of this year.

“The opportunity to bring relief to the many patients who face the debilitating effects of movement disorders and suffer from the effects of conditions such as chorea and tardive dyskinesia is greatly needed and humbling,” said Michael Hayden, MD, PhD, Teva’s president of Global R&D and chief scientific officer. “We are eager to continue the exciting work that the Auspex team has started, and believe the portfolio is a natural fit for our development programs.”

Auspex became a wholly owned subsidiary of Teva, and shares of Auspex will cease to be traded on the NASDAQ Global Market. Read the press release

In other company news, Teva announced an updated investor presentation is available on its website and will be filed with the SEC in connection with its proposed combination with Mylan N.V.

Among other things, the presentation notes:

  • The Teva Board and management team are committed to consummating a transaction as soon as possible, and the Company is ready and willing to meet with Mylan and its advisors immediately.
  • Teva’s proposal is extremely attractive for Teva and Mylan stockholders and all other stakeholders.
  • The proposed combination makes compelling strategic, financial and cultural sense.
  • The combined company will have a strong and flexible financial profile, including substantial debt capacity and an investment grade rating.

Read the full release