Dainippon Sumitomo Pharma Co., Ltd. and Sepracor Inc. have entered into a definitive agreement under which DSP will acquire Sepracor for approximately $2.6 billion in cash. The boards of directors of both companies approved the transaction. Sepracor will become a wholly owned subsidiary of Dainippon Sumitomo Pharma America Holdings, Inc., a U.S. subsidiary of DSP, and will continue its operations based in Marlborough, MA and in Canada. Sepracor will retain its name, branding and intellectual property rights.

Sepracor, a specialty pharmaceutical company, has a portfolio of pharmaceutical products and candidates with a focus on central nervous system (CNS) and respiratory disorders. Sepracor’s currently marketed products in the U.S. include Lunesta for the treatment of insomnia, Xopenex and Xopenex HFA for the treatment of bronchospasm, Brovana for the treatment of bronchoconstriction, Omnaris Nasal Spray for the treatment of allergic rhinitis, and Alvesco HFA for the maintenance treatment of asthma.

Sepracor’s U.S. commercial organization includes 1,200 sales professionals. The company has a Canadian subsidiary, Sepracor Pharmaceuticals, Inc., that markets several additional products in that region, focused in the cardiovascular, CNS, pain and infectious disease therapeutic areas.

The acquisition provides DSP access to the U.S.- and Canadian-based pharmaceutical platform; expertise to develop and commercialize lurasidone, DSP’s product candidate for the treatment of schizophrenia; and expands the scale of DSP’s portfolio of marketed products.

Masayo Tada, president of DSP, said, “Sepracor has pursued growth through development of its unique pipeline and introduction of innovative pharmaceutical products to the market, a strategy that fits perfectly with our management philosophy. We expect that Sepracor will become a ‘Center of Excellence’ for DSP in the U.S., and will make a significant contribution to DSP both as a commercialization infrastructure for our self-developed products and as a strategically important base for business development.”

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