Vernalis to acquire Cita

Vernalis (LSE:VER; VNLS) will acquire neurology company Cita (Mississauga, Ontario) for $29.5 million in stock. VER also will pay Cita shareholders up to $35 million in stock or cash, contingent upon certain milestones for Cita's CNP1512 melevodopa/carbidopa to treat Parkinson's disease (PD) and CNP3381 to treat neuropathic pain. Cita has exclusive worldwide rights to CNP1512 from Chiesi (Parma, Italy). The deal excludes Italy, where the drug is approved. The compound is expected to enter North American and European Phase III trials in the second half of 2006. CNP3381, a NMDA antagonist and MAO-A inhibitor, is expected to enter a Phase II trial to treat diabetic neuropathic pain in the first half of next year. In August, Cita postponed its planned IPO and said it was in advanced talks about a potential acquisition by an undisclosed company.

Also on Friday, VER raised L42.7 million ($74.4 million) in a placing and open offer of 67.7 million shares and L15.3 million ($26.7 million) in a vendor placing of 24.3 million shares. The offerings, both of which were underwritten by Piper Jaffray, were priced at 63p, which is a 1p discount to VER's Thursday close. ...