Teva Pharmaceutical Industries Ltd.
) gained 2.3% on Jan 21 after it announced that it has entered
into a definitive agreement to acquire
) for $3.65 per share or about $144 million. The deal is expected
to close next month.
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NUPATHE INC (PATH): Free Stock Analysis
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The acquisition will add NuPathe's migraine drug, Zecuity, to
Teva's portfolio. Zecuity is currently the only migraine patch
approved in the U.S. for the acute treatment of migraine with or
without aura in adults. Zecuity has demonstrated impressive
efficacy and safety profile in phase III studies.
As per the terms of the deal, NuPathe stands to receive an
additional $3.15 per share from Teva subject to the achievement
of certain sales targets related to Zecuity. Teva will pay $2.15
per share if Zecuity reaches at least $100 million of net sales
during any four consecutive calendar quarters on or prior to nine
years of launch, which would increase by $1.00 per share if
Zecuity reaches at least $300 million during the above-mentioned
We are positive on Teva's NuPathe acquisition. Being the only
migraine patch in the market, its transdermal mode of
administration will provide an edge over currently available oral
drugs. We believe Zecuity possesses the ability to capture a
share of the lucrative migraine market.
Teva has several programs in its pipeline with an increased focus
on central nervous system (CNS) treatments. With this
acquisition, Teva will have access to NuPathe's proprietary
technology (including the transdermal delivery system).
Endo Health Solutions Inc.
) was also looking to acquire NuPathe. Endo and NuPathe shares
fell 1.71% and 7.53%, respectively, on the Teva-NuPathe news. We
note that NuPathe shares had soared 35.6% on Jan 8 after Teva had
initially expressed its interest in the company.
Teva carries a Zacks Rank #5 (Strong Sell). Other better-ranked
) carrying a Zacks Rank #1 (Strong Buy).