Teva Pharmaceutical Industries (NYSE:TEVA) will purchase Auspex (NASDAQ:ASPX) in a deal valued at $3.5 billion. The all-cash deal will allow Teva to branch out into the central nervous system part of the industry. Auspex offers movement disorder medications and drugs for tics.
The deal is valued at $101 a share. Auspex stock closed at $70.91 on Friday. After news broke of the acquisition, the company’s stock price rose 41% to $100.5 a share. Teva shares rose slightly on the news before falling into the negative for the day. Currently, Teva shares are down just .08%.
Teva has been trying to bolster its product portfolio with the addition of new drugs. The company expects the acquisition to bring in up to $2 billion in revenue under the right market conditions. Analysts still believe that if the right company is for sale, Teva will take steps to acquire it.
Auspex shareholders have already shown support for the transaction.
The Auspex brand will also include experimental products, such as Tetrabenazine, that helps those with Huntington’s disease and Tourette’s better manage their symptoms. Auspex is awaiting approval of a new drug based off of Tetrabenazine that is expected to have over $1 billion in annual sales after approval.