Otsuka announces takeover of Avanir Pharmaceuticals

Otsuka has announced the takeover of the US-based biopharmaceutical company Avanir Pharmaceuticals in a deal worth $3.54 billion (2.26 billion pounds).

Specialising in central nervous system (CNS) disorders, Avanir employs around 500 people and is the developer of Nuedexta, the world's first and only approved treatment for the neurologic disease pseudobulbar affect.

Its pipeline, meanwhile, includes programmes in Alzheimer's disease, Parkinson's disease, migraine and other CNS indications, such as the promising new chemical entity AVP-786, which is currently being studied as a treatment for Alzheimer's-associated agitation.

The takeover will give Otsuka access to all of these therapies, while Avanir's clinical development and commercial expertise in neurologic diseases will complement Otsuka's psychiatric disease capabilities.

Otsuka Pharmaceutical president Taro Iwamoto said: "As we bring together Otsuka's experience and business track record in the area of mental illnesses with Avanir's strengths in neurologic diseases, we believe that we can evolve into a truly global CNS pharmaceutical company."

Last month, Otsuka announced its financial results for the second quarter of its 2014 business year, during which it experienced a year-on-year net sales increase of 7.6 percent.