Cynapsus Therapeutics (CYNA) Stock Doubles on Sunovion Buyout
Shares of Cynapsus Therapeutics Inc. (CYNA) were trading up +21.44 or +116.78 percent to $39.80 per share in Thursday’s premarket after news broke late yesterday that it would be acquired by Sunovion Pharmaceuticals Inc. Cynapsus Therapeutics stock closed at $18.36, down -0.14 or -0.76 percent in Wednesday’s regular trading session.
Originally known as Cannasat Therapeutics, the Toronto, Canada based company changed its name to Cynapsus Therapeutics in 2010.
The sublingual film — known as APL-130277 — is the only oral delivery product with apomorphine hydrochloride, the only molecule approved for the treatment of motor symptoms due to Parkinson’s disease. Apomorphine is currently the only approved as a subcutaneous injection in the United States. Cynapsus lead candidate has already successfully completed a Phase 2 clinical trial.
The drug is a “turning on” medication for Parkinson’s patients undergoing an OFF episode. The treatment safely converts the Parkinson’s patient from the OFF state to the ON state avoiding many of the issues associated with subcutaneous injections.
Marlborough, Massachusetts biotech firm Sunovion Pharmaceuticals Inc was originally known as Sepracor, Inc. until it was acquired for $2.6 billion in 2010 by Dainippon Sumitomo Pharma Co., Ltd based in Osaka, Japan. The company develops and commercializes treatments for psychiatric, neurological and respiratory patients. Sunovion’s product line includes Brovana (arformoterol tartrate), Latuda (lurasidone HCI) and Aptiom (eslicarbazepine acetate).
After the market close on Wednesday, Sunovion and Cynapsus announced they had entered into a definitive agreement under which Sunovion will acquire all Cynapsus outstanding common shares for $40.50, a +120 percent premium over Cynapsus shares closing price on Wednesday. The transaction is valued at approximately $624 million.
Anthony J. Giovinazzo, President and Chief Executive Officer of Cynapsus stated in the joint press release that, “With its leadership in therapies for central nervous system disorders and commercial experience specific to neurology, we believe Sunovion is best suited to advance APL-130277 in the United States and other key markets. This transaction culminates years of dedicated work by the Cynapsus team and represents significant value creation for our security holders.”
Nobuhiko Tamura, Chairman and Chief Executive Officer of Sunovion stated that, “Parkinson’s disease is a chronic, progressive neurodegenerative disease that affects more than four million people around the world, and there is a significant need for new options to treat the OFF episodes associated with it. We believe that APL-130277 is a novel late-stage candidate with the potential to make a real difference for patients and their families.”
In the United States, an estimated 1 million people suffer from Parkinson’s disease; while another 4 to 6 million people suffer from Parkinson’s disease worldwide, making it the second most common neurodegenerative disease behind Alzheimer’s disease. Studies have found that up to 40 percent of Parkinson’s patients with ongoing drug therapy experience OFF episodes at least once a day and as many as six times per day.
The transaction will be funded with Sunovion’s cash on hand and has been approved by the boards of both companies. The deal is expected to close by the fourth quarter of 2016.
Other News About CYNA
CYNA: Cynapsus Snags Fast Track Designation for APL-130277 To Treat Parkinson’s Disease (PD)
Fast Track designation was given on August 29th.
Cynapsus Announces Positive Opinion from Data and Safety Monitoring Board on Phase 3 Parkinson’s Disease Clinical Study Allowing for At-Home Titration
The Data Safety and Monitoring Board has completed a review of the safety data from the Phase 3 trials.
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