According to news of most recent synergies in the market, one of the most prominent one is the merger of Avanir Pharmaceutical Inc. (NASDAQ:AVNR) and Otsuka Pharmaceutical from Japan. The buyout has been settled at $17.00 per share. The stocks closed at $15.00 on Monday.
As soon as the deal is agreed upon, Avanir (NASDAQ:AVNR) will operate at its current business structure as an autonomous subsidiary of the American Otsuka.
In early September, Avanir (NASDAQ:AVNR) announced that its recent drug, AVP-923 has had positive results in phase 2 of test cycle. This drug is a probable treatment for aggression and agitation in patients who have Alzheimer’s disease. According to analysts, Avanir (NASDAQ:AVNR) might have had gone into merger for this drug in particular, as the drug is being speculated as quite an active content for the treatment of several mental disorders.
The president and representative director of Otsuka Pharmaceutical, Taro Iwamoto has stated in a press release that when the Otsuka’s specialty; enhanced drug constituents in mental illnesses and other similar disorders, are brought together with Avanir (NASDAQ:AVNR)’s knowledge of neuroscience and diseases that come under that umbrella, the synergy can evolve in to an international CNS pharma company. Both these companies are quite known for their innovation of unknown territories with success of bringing useful drugs in to the market.
The AVP-923 has tested positive in the initial stage of the test cycle that it is very effective in alleviating or all together diminishing neuropsychiatric symptoms of aggression and anxiety that are caused by mental illnesses, such as dementia or Alzheimer. Its intake can also be helpful for patients who suffer from other similar disorders. This probable impact of AVP-923 doesn’t only help in improving a patient’s life, but also helps the caregiver.
According to the health generals and research, there is no cure for the treatment to diminish Alzheimer’s disease. There are drugs in the market that can help with detection and delaying of symptoms, but none, so far that helps with the actual treatment of the disease. If AVP-923 is successful in attaining this impossible status as a cure for this disorder, it could be an epic entrant in to the pharma market, in USA alone, a country that hosts one of the major population of citizens who suffer from this mental disorder. Currently, 5.1 million Americans have it, and approx. half a million under 65s have some form of it, according to statistics shared by the Alzheimer’s Foundation of America.
Avanir (NASDAQ:AVNR) stock has increased 122%, since September, hence closed at $15.00 on Monday. Avanir (NASDAQ:AVNR) has been public for over 20 years. The stock price has ranged from $15 in 2006 to over $20 or even $25 during 2000 and 2001.
As a result of this partnership, the Avanir (NASDAQ:AVNR) shares have gone up $17.13, which is an up of 14.2% since Monday close. The projected analysts’ stock price target is $17.71, and a range between $2.62 and $15.34, based on 52-week trading range. The market cap before the buyout was $2.58 billion.