On Monday, March 30, Teva Pharmaceutical Industries Ltd. announced that it would be acquiring Auspex Pharmaceuticals for $3.2 billion. As a result of the acquisition, shares of Auspex climbed from $29.60 (41.7 percent) to $100.51 while Teva shares increased by $1.67 (2.7 percent) to $63.65. This major increase in the value of the shares for both companies will boost their presence in treatments for central nervous system disorders, which may save many lives.
Teva, established and based in Jerusalem, Israel in 1901, is a leading pharmaceuticals company that produces and markets affordable generic drugs. The company produces over 64 billion tablets and capsules a year at 66 manufacturing companies. As one of the world’s largest generic drug developers with revenue exceeding $20 billion, Teva has a range of specialty medicines including Copaxone for multiple sclerosis and Azilect for Parkinson’s disease. Teva’s chief executive, Erez Vigodman, announced, “[t]he acquisition of Auspex is a significant step in strengthening Teva’s leadership position in C.N.S. and advances us into underserved movement disorder markets. This transaction represents a first major step with regards to that commitment, and we expect to continue this focus in the future.”
Auspex Pharmaceuticals, based in La Jolla, California, is a biopharmaceutical company focused on the development and commercialization of medicines for people with movement disorders and other rare diseases. Pratik Shah, Auspex’s chief executive, believes that the acquisition was beneficial not only for Auspex and its shareholders, as it validates Auspex’s portfolio of drug candidates while delivering significant financial return, but trusts that the experience Teva brings as a leading pharmaceutical company will put Auspex’s “programs into the hands of a company that has the experience and commitment to deliver our pipeline of therapies to patients in need.” The acquisition has already led to the shares of both Auspex and Teva increasing at an extraordinary rate. Auspex believes that Teva will further expand one of its leading treatments for movement disorders called SD-809, which has shown positive results in a late-stage study of patients with Huntington’s disease. Teva’s presence, experience, and commitment may lead to a successful and necessary expansion in much needed medicines in combatting central nervous system disorders.
This extraordinary acquisition involved two major law firms, Goodwin Proctor and Cooley, providing legal support for Auspex and Teva. With hope, this acquisition may save the lives of many who suffer from central nervous system disorders.
A New Leader in Combatting C.N.S. Disorders (PDF)