Published On: Mon, Jul 24th, 2017

Israeli Biomed NeuroDerm sells for $1.1 Billion in Cash to Japanese Mitsubishi Tanabe

The price for NeuroDerm, the largest ever acquisition of an Israeli pharmaceuticals company, reflects a 17% premium on the share price on July 21

In the largest biomed acquisition in Israel, and one of the largest deals in the Israeli economy in general, biomed NeuroDerm is sold for $ 1.1 billion in cash to Japanese Mitsubishi Tanabe Pharma.

NeuroDerm is a clinical stage pharmaceutical company developing drug-device combinations for central nervous system (CNS) disorders.

The transaction was approved unanimously by the board of directors of NeuroDerm and reflects a market value of $ 1.1 billion, as stated, and the offer of $ 39 per share in cash represents a 17% premium on the closing price of the share on July 21, 2017, following an increase in the previous months. That regulatory approvals and approval of shareholders will be accepted in the normal schedule for such transactions, NeuroDerm expects the deal to be completed in the fourth quarter of 2017.

NeuroDerm is traded on Nasdaq at a company value of $874 million, and was traded on Wall Street for a total of three years, and was issued in November 2014 at a company value of $ 164 million after money. The share’s return on the issue price is 230%.

Neuroderm has developed a new formulation of Lavodopa, the popular drug for Parkinson’s. In this unique method focus on the transmission of the drugs. The company hopes to launch a low-dose drug in the next 1-2 years, replacing an existing drug in the oral market, as well as a high-dose drug that may replace surgery, in which a mechanism that releases the drug in side the body.

In this way, the drug can be passed directly through the skin into the bloodstream, instead of swallowing as is currently accepted. Transferring the drug directly to the bloodstream should allow for a higher dose of the drug, as well as prevent significant increases and decreases in the levels of drugs in the blood, as obtained when the drug is administered orally. Conditions of stagnation are caused, among other things, by the non-optimal dosage of the drug in the blood, and neurodermam showed in the experiment that it does reduce them.

Centreview Partners LLS serves as Financial Advisor, White & Case LLP, Meitar, Liquornik, Geva, Leshem Tal are legal advisors of NeuroDerm.

The company’s Chairman and one of the leading investors, Robert Taub, founded Omrix and sold it for $ 458 million to Johnson & Johnson.

“We believe the transaction will bring important benefits to shareholders of NeuroDerm and Parkinson’s patients who urgently need innovative treatments,” said Dr. Oded Liebermann, CEO of NeuroDerm. “Mitsubishi Tennabe has demonstrated expertise in the development and commercialization of the neurological field and we are confident that the combination of their resources and the strong data that supports ND0612, our advanced drug for Parkinson’s disease in phase III trials, will help make this important new treatment available as quickly as possible. You invested in Neuroderm and reflected the value we already created, “he said.



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