Otsuka Pharmaceutical Co., Ltd. has entered an agreement in which Otsuka America, Inc., its U.S. subsidiary, will acquire Avanir for $3.5 billion in cash. Avanir, based in Southern California, is a biopharma company specializing in CNS diseases, and employs approximately 500 people.
 
Avanir developed and launched NUEDEXTA (dextromethorphan hydrobromide/quinidine sulfate) in the U.S. in 2011 as the first and only approved treatment for the neurologic disease pseudobulbar affect (PBA). Sales of NUEDEXTA in fiscal year 2013 were $94 million, a 50% increase for the year. The acquisition also brings the late-stage investigational compound AVP-786 in clinical development to treat agitation associated with Alzheimer’s disease, and Avanir’s clinical development and commercial expertise in neurologic diseases, which supports Otsuka’s expansion strategy in psychiatric diseases.
 
Otsuka Pharmaceutical president and representative director, Taro Iwamoto, said, “As we bring together Otsuka’s experience and business track record in the area of mental illnesses with Avanir’s strengths in neurologic diseases, we believe that we can evolve into a truly global CNS pharmaceutical company. We admire and respect Avanir’s innovative vision and execution, and want to continue to grow together.”
 
Keith A. Katkin, president and chief executive officer of Avanir Pharmaceuticals, noted, “I am extremely excited to see these two organizations come together to create a leading CNS company. Otsuka is a clear leader in psychiatry and Avanir in neurology; together I believe our organizations will be able to more rapidly develop and commercialize needed medications to potentially help millions of patients around the world.”