Mitsubishi meets Neuroderm for acquisition

Neuroderm, an Israel-based Parkinson’s disease therapy spinout of Ben Gurion University of the Negev (BGU), has been bought by Mitsubishi Tanabe Pharma, the pharmaceutical arm of conglomerate Mitsubishi Chemical, for approximately $1.1bn.
Founded in 2003, Neuroderm has a clinical-stage pipeline consisting of three belt-worn pumps that administer liquid medicine subcutaneously, or below skin level, to treat early, mid or late-stage Parkinson’s disease.
The pumps are intended to be safer than invasive surgical operations and more effective than orally-administered alternatives such as Levodopa, which can cause motor complications in late-stage Parkinson’s patients.
Levodopa and Neuroderm’s assets both rely on an amino acid known as L-Dopa known to be beneficial in treating the disease. Crucially, however, Neuroderm hopes to avoid large fluctuations of L-Dopa in the bloodstream.
Mitsubishi Tanabe will integrate Neuroderm as a wholly-owned subsidiary following the transaction.
The spinout’s lead-asset, ND0612, is currently undergoing phase 3 trials targeting advanced Parkinson’s in US and Europe and is expected to launch during Mitsubishi’s 2018-2019 financial year, helping the corporate meet its sales targets for 2020.
Neuroderm listed on the Nasdaq stock exchange in 2014 following a $45m initial public offering at a $164m post-money valuation, according to Globes, falling substantially short of the $290m market cap targeted in Neuroderm’s prospectus.
The company obtained $600,000 of seed funding at an undisclosed date from Ofakim High Tech Ventures (OHV), a startup incubator owned by investment firm Capital Point.
It also received early-stage support from the Office of the Chief Scientist in Israel, a government agency now known as Israel Innovation Authority which sets national R&D policies.
Neuroderm subsequently secured $2.5m in a 2007 series A round from private investors including Robert Taub. Uwe Wascher, managing director of Wascher and Partner, joined the board at this juncture, though he was not officially named as an investor.
Investment and M&A advisory firm Elias Group later backed a $16m round for the  spinout in 2014 co-led by unspecified existing investors.
Neuroderm had expected to raise $15m in a 2012 round led by an unnamed private investor, according to Globes, though it is unclear whether the deal took place. Robert Taub, Uwe Wascher and Shmuel Cabilly were supposed to take part in the round.