Dainippon Sumitomo Pharma to expand in North America with acquisition of Sepracor

Japanese pharma company Dainippon Sumitomo Pharma (DSP) has entered into a definitive agreement to acquire US-based Sepracor for approximately US$2.6bn (Euro 1.8bn). The transaction was unanimously approved by the Boards of Directors of both companies.

Upon completion of the deal, Sepracor will become a wholly owned subsidiary of Dainippon Sumitomo Pharma America Holdings, a wholly owned US subsidiary of DSP, and will continue its operations based in Marlborough, Massachusetts, and in Canada. Sepracor will retain its name, branding and intellectual property rights and continue to operate as Sepracor.

The purchase of Sepracor accelerates DSP's aim of becoming a leading global pharmaceutical company. In particular the acquisition is expected to give DSP access to a fully integrated US and Canadian-based pharmaceutical platform and allow it to leverage Sepracor's expertise to develop and commercialise lurasidone, DSP's self-developed product candidate for the treatment of schizophrenia, which is in Phase III clinical development.

It will also expand the overall scale of DSP's business by adding a portfolio of profitable, marketed products in the US and Canada and augment the company's existing product pipeline with promising near-term product candidates such as STEDESA (eslicarbazepine acetate) for the treatment of epilepsy and other potential indications, OMNARIS HFA, a nasal aerosol formulation of ciclesonide, together with other early- and mid-stage CNS and respiratory assets.

"Sepracor has pursued growth through development of its unique pipeline and introduction of innovative pharmaceutical products to the market, a strategy that fits perfectly with our management philosophy," said Masayo Tada, President of DSP. "We expect that Sepracor will become a centre of excellence for DSP in the US."