Biotie Therapies Oyj (HE:BTH1V) strikes Acord(a) with PD franchise
Acorda Therapeutics has made an all-cash offer for Biotie at €0.2946 per share, a 95% premium to the previous close price, valuing the company at €321m (ex. options). Our last published valuation was €0.28/share. The timing of the deal is relevant in the context that the primary Phase III study for tozadenant in Parkinson’s disease (PD) patients is in early stages of recruitment and preliminary data are not expected until end 2017. Biotie’s board has recommended the offer and shareholders representing 59% of the outstanding shares have undertaken to accept Acorda’s proposal.
Following highly positive results from a pivotal 240-patient Phase IIb with tozadenant, an orally potent and selective adenosine A2a receptor antagonist, Biotie initiated a 450-patient Phase III study (TOZ-PD) in July 2015 in mild- to moderate-PD patients experiencing motor fluctuations on levodopa. With estimated cash of €74m at end 2015, Biotie had sufficient funds to complete the TOZ-PD to data read-out by end 2017/early 2018, but not to fund the requisite second Phase III safety study, to be initiated post TOZ-PD read-out, to generate the 1,500 unique patient exposures required to gain FDA approval.
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