Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) Buys Auspex To Get Drug For Huntington’s

Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has bought Auspex Pharmaceuticals Inc (NASDAQ:ASPX) in a deal valued at $3.2 billion. Auspex had earlier made news for breakthrough in controlling the involuntary movements triggered by Huntington’s disease.The new drug developed by Auspex, SD-809, shows a clear improvement in diagnosed patients.

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Auspex has been developing drugs based on its deuterium R&D platform. The method reportedly increases the effectiveness of new drugs while at the same time minimising harms. Auspex is also expected to release further Phase III data on dyskinesia for the lead drug this summer. The drug is also being tested for Tourette syndrome. The company also has SD-560 in the pipeline for idiopathic pulmonary fibrosis

Teva is giving $101 per share to get drug SD-809 from Auspex, the drug cleared late stages of testing and clearly improved patients, according to reports. The therapy given to patients is a molecule inhibitor of cesicular monoamine 2 transporter (VMAT2), which helps regulate the dopamine levels.In simple words, SD-809 is a deuterated version of tetrabenzine-Xenazine which is already in use for Huntington’s.

The move by Tevais to increase its presence in the treatment of Central Nervous Disorders like Huntington’s disease. The drug being tested by Auspex aims to treat chorea associated, with the Huntington’s, dyskinesia.

Auspex plans to submit a new application to the U.S. Food and Drug Administration (USFDA) by mid- 2015 for the SD-809, which is currently an orphan drug. The company expects to get regulatory approval and aims to sell it by the next year.

Tevais giving a premium of 42% on Auspex shares. This is another in the recent patters of biotech assets being bought for big premiums.

Rony Gal from Bernstein raised concerns over the deal and added that TEVA is trying to get a drug that is about to go generic, with a new drug that will be hard to buy for Americans.

John Eisler

John Eisler

John is a special projects and general assignment reporter, noted for breaking several exclusive stories.