Acorda Therapeutics (NASDAQ:ACOR) will acquire privately-held Civitas Therapeutics for $525 million in cash, adding the phase 3-ready treatment for OFF episodes in Parkinson’s Disease (PD), CVT-301, to its roster of developmental drugs. The acquisition also includes Civitas’ ARCUS pulmonary delivery technology.
CVT-301 is a system comprised of a dry powder levodopa formulation administered via inhaler. According to the companies, CVT-301 can provide rapid delivery of levodopa during OFF episodes associated with PD. A pivotal phase 3 trial will begin enrolling early in 2015.
The deal sent ACOR up 20% in the Wednesday session despite the $1.5 billion company having shelled out a large chunk of its $725 million in cash & equivalents (as of June 30) in the acquisition. Acorda estimates the U.S. sales opportunity for CVT-301 at $500 million. To that end and perhaps more interesting for small-cap biotech investors, Cynapsus Therapeutics (OTCMKTS:CYNAF) (CVE:CTH) jumped 10% with Acorda’s deal. Cynapsus develops APL-130277, a sublingual thin film strip containing apomorphine also for OFF episodes in PD, and is running a series of small studies that the company believes put it on track for a NDA filing in two years. At a market capitalization of just $65 million (fully diluted), investors see the Civitas/Acorda deal as validation of the market opportunity; Cynapsus rallied on hopes that it can cash in on this same, sizeable market.
The majority of Parkinson’s patients experience OFF episodes, which increase in frequency and severity during the course of the disease and are difficult to treat. The current standard or care, Apokyn (injectable apomoprhine), is burdensome given its reliance on subcutaneous delivery while a patient succumbs to rigidity/reduced mobility.
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