BioCentury
ARTICLE | Company News

Upsher-Smith to acquire Proximagen

June 14, 2012 1:23 AM UTC

Specialty pharma Upsher-Smith Laboratories Inc. (Maple Grove, Minn.) will acquire the 84% of Proximagen Group plc (LSE:PRX) it does not already own for 320p per share in cash. The price, which values Proximagen at about L223 million ($345.7 million), is a 16% premium to Proximagen's close of 275p on Tuesday, before the deal was announced. Proximagen shareholders will also receive a contingent value right worth up to 192p per share, or L133.8 million ($207.4 million) in total, based on revenue milestones for Proximagen's PRX167700 and PRX00933. PRX167700, a vascular adhesion protein-1 ( VAP-1; SSAO) antagonist, is in Phase I testing for rheumatoid arthritis (RA) and psoriasis. Upsher-Smith plans to find a partner for the product after a Phase II trial, which is slated to start next year. Upsher-Smith also plans to find a partner for PRX00933, a serotonin (5-HT2C) receptor agonist that completed a Phase II trial for obesity.

Upsher-Smith said the deal will provide an early stage R&D capability, particularly in CNS diseases. Proximagen's board unanimously approved the deal, which is subject to shareholder approval at a July 20 meeting. Proximagen was up 60p (22%) to 335p on Wednesday. ...