Acorda Therapeutics To Acquire Biotie Therapies To Boost Its Parkinson's Disease Therapeutic Development

Acorda Therapeutics Inc ACOR, a biopharmaceutical company that develops therapies for neurological disorders, on Tuesday announced that it has acquired Biotie Therapies Oyj (ADR) BITI for $25.60 per ADS.

Biotie Therapies is a Finland-based drug development company that develops products for neurodegenerative and psychiatric disorders.

Shares of Biotie Therapies were trading higher by more than 88 percent shortly after Tuesday's opening bell as the transaction values the company at approximately $363 million - a noticeable premium to the company's approximate $180 million valuation as of last Friday.

Shares of Acorda Therapeutics were trading lower by 1.20 percent at $39.42.

Acorda Therapeutics noted it will obtain worldwide rights to tozadenant, an oral adenosine A2a receptor antagonist currently in Phase 3 development in Parkinson's disease, as part of the acquisition. The company also added it will obtain global rights to SYN120, an oral, 5-HT6/5-HT2A dual receptor antagonist for Parkinson's-related dementia, in Phase 2 development with support from the Michael J. Fox Foundation.

"Our acquisition of Biotie positions Acorda as a leader in Parkinson's disease therapeutic development, with three clinical-stage compounds that have the potential to improve the lives of people with Parkinson's. Tozadenant, Biotie's most advanced clinical program, is a promising therapy being developed to reduce daily OFF time," said Ron Cohen, M.D., Acorda's President and CEO. "Adenosine A2a receptor antagonists may be the first new class of drug approved for the treatment of Parkinson's in the U.S. in over 20 years. Approximately 350,000 people with Parkinson's in the U.S. experience OFF periods, and if approved, tozadenant could provide a much needed treatment option."