Upon completion of the acquisition, which is expected in the fourth quarter of this year, Mindset will become a fully-owned subsidiary of OAI, and Otsuka will continue to develop several new 5-HT2A agonists in North America and Europe
Otsuka to acquire Mindset Pharma. (Credit: Roberto Sorin on Unsplash)
Otsuka Pharmaceutical has agreed to acquire Canada-based drug discovery and development company Mindset Pharma, for a total consideration of CAD80m ($59.2m).
The Japanese pharmaceutical company has executed the agreement through its wholly-owned subsidiary Otsuka America (OAI).
The board of directors of both companies have approved the transaction.
It is expected to be closed in the fourth quarter of this year, subject to approval by the Canadian courts, Mindset shareholders and the completion of other legal procedures.
Upon completion, Mindset will become a fully owned subsidiary of OAI. Otsuka will develop several new 5-HT2A agonists in North America and Europe.
Otsuka, through OAI and a special purpose company established for the purpose of the acquisition, will sign a Plan of Arrangement.
Otsuka president and representative director Makoto Inoue said: “Otsuka Pharmaceutical has designated psychiatry and neurology as one of its top priority therapeutic areas and has been developing antipsychotic agents with clinical significance on a global basis.
“With the addition of Mindset’s novel compounds and synthesis processes, we expect this acquisition will further contribute to the treatment of patients suffering from psychiatric disorders.”
Mindset is a drug discovery-based research and development company that develops next-generation therapeutics to treat psychiatric and neurological disorders.
In January last year, Mindset and The McQuade Center for Strategic Research and Development (MSRD), entered into a joint development agreement.
MSRD is an affiliate of Otsuka that invests in early-stage research programs.
The partnership aims to support Mindset’s research and develop a new class of agonists that activate the serotonin 5-HT2A receptor.
The collaboration has been developing a serotonin 5-HT2A agonist as a potential therapy for treatment-resistant depression and post-traumatic stress disorder (PTSD).
Mindset CEO James Lanthier said: “We are thrilled to announce this all-cash transaction with Otsuka as we believe it maximizes value and is a great outcome for all Mindset stakeholders.
“We believe Otsuka is ideally positioned to maximize the value of the Mindset assets and IP portfolio to the future benefit of patients.”