NEW YORK (AP) — Teva Pharmaceutical Industries Ltd. is buying Auspex Pharmaceuticals for about $3.2 billion in a move to strengthen its position on central nervous system condition treatments.
Jerusalem-based Teva said Monday that it will pay $101 per share, marking a 47 percent premium to San Diego-based Auspex's closing stock price on Friday.
Auspex does not yet have a product on the market. Its lead product candidate is Austedo, which is aimed at treating involuntary movement associated with the genetic disorder Huntington's disease.
Teva is one of the world's largest generic drug developers. It also has a range of specialty medicines, including Copaxone for multiple sclerosis and Azilect for Parkinson's disease. Revenue in 2014 reached $20.3 billion.
"The acquisition of Auspex is a significant step in strengthening Teva's leadership position in central nervous system (disorders) and advances us into underserved movement disorder markets," Teva President and CEO, Erez Vigodman, said in a statement.
Teva expects the buyout of Auspex to start contributing revenue in 2016 with an anticipated launch of Austedo.
The acquisition is expected to close in mid-2015.
Shares of Auspex Pharmaceuticals Inc. climbed $29.60, or 41.7 percent, to $100.51 in midday trading Monday while Teva shares rose $1.67, or 2.7 percent, to $63.65.