Dainippon Sumitomo close to buy US drug maker Sepracor
03 Sep 2009
Dainippon Sumitomo Pharma Co, one of the top 10 pharmaceutical company in Japan, is in the final stage of talks to buy US drug maker Sepracor Inc. for about 250 billion yen ($2.70 billion), the Nikkei business daily reported today.
The Tokyo Stock Exchange said today it has suspended trade on Dainippon. It is expected that the Osaka-based pharmaceutical firm will announce its plan later today.
The deal would value Sepracor's shares at around $23 each, based on the number of shares outstanding at end-July.
The move is intended to boost Dainippon Sumitomo Pharma's lineup of central nervous system and other drugs, the paper said.
The funding for the Massachusetts-based Sepracor purchase will come from sources including cash on hand and loans, the Nikkei said.
Dainippon, which sells the hypertension drugs Amlodin and Prorenal, reported last month, the success of its second late-stage trial of Lurasidone and confirmed it is on track to file for marketing approval.