Pharma BD Deal Intelligence

Mitsubishi Tanabe Pharma Corporation / NeuroDerm Ltd.

2017 · Acquisition/Merger · $1.1B · Complete

CALLED IT — OFF BY 14

Nine years after paying $1.1B for a single Parkinson's asset, the drug still had no US approval, had taken two FDA rejections, and had already been beaten to market by a direct competitor.

Full analysis, sources & comparables →

The coverage arc

Jul 24, 2017 BioPharma Dive Bullish

Mitsubishi Tanabe agreed to acquire NeuroDerm for $1.1B in cash at $39/share, a 79% premium over the unaffected price, betting on ND0612 as a less-invasive…

Aug 30, 2017 Viceroy Research Bearish

Viceroy Research argued that the $1.1B NeuroDerm acquisition would be value-destructive, predicting a complete write-off of NeuroDerm's ~$970M enterprise value…

Jun 12, 2024 NeurologyLive Bearish

FDA issued a Complete Response Letter for ND0612 in June 2024 citing facility-related concerns rather than clinical issues, delaying market entry roughly seven…

Source summaries from our enrichment pipeline; follow links for originals.

All 5 sources with sentiment breakdown →

Mitsubishi Tanabe agreed to acquire NeuroDerm for $39.00/share in cash, total transaction value approximately $1.1B (79% premium over June 9 unaffected price). NeuroDerm's lead asset ND0612 is a late-stage continuous subcutaneous levodopa/carbidopa formulation for Parkinson's disease motor fluctuations, with peak sales potential of ~$1.7B. Largest Japan-Israel pharma deal at the time.

Did it work? Outcome assessment

Nine years after paying $1.1B for a single Parkinson's asset, the drug still had no US approval, had taken two FDA rejections, and had already been beaten to market by a direct competitor.

Strategic verdict
Failed to Achieve
Financial impact
Dilutive
Pipeline outcome
Assets Advanced

Key facts

Related deals — scored

DealYearValueOutcome
Mitsubishi Tanabe Pharma Corporation / NeuroDerm Ltd. (this deal)2017$1.1B36
Novartis AG / Advanced Accelerator Applications S.A.2017$3.9B98
Allergan plc / Merck & Co., Inc. (CGRP receptor antagonist program)2015$250M91
Cephalon Inc. / Laboratoire L. Lafon S.A. (Group Lafon)2000$450M89
Teva Pharmaceutical Industries Ltd. / Auspex Pharmaceuticals2015$3.5B86
Teva Pharmaceutical Industries Ltd. / Biogal Pharmaceutical199582
Novartis AG / PTC Therapeutics Inc.2024$2.9B80

Compare all 7 side-by-side →

See the full interactive analysis, sources & comparables →