Otsuka Pharmaceutical Investing Nearly $1.6 million in MethylGene
Thu, 10/15/2009 - 4:54am
MONTREAL — Japanese drug company Otsuka Pharmaceutical Co. Ltd. said Wednesday it has agreed to invest roughly $1.6 million in MethylGene Inc., part of a research collaboration and license deal signed with the Canadian drug developer last year. Otsuka Pharmaceutical, a wholly owned subsidiary of Otsuka Holdings Co., will acquire 3,686,182 shares of MethylGene for approximately 43 cents per share. MethylGene shares closed up a penny at 36 cents on the Toronto Stock Exchange on Wednesday. The acquisition, together with the 370,664 MethylGene shares already held by Taiho Pharmaceutical Co., Ltd., another wholly owned subsidiary of Otsuka Holdings, will represent 10.05 per cent stake in the company. Otsuka Pharmaceutical and MethylGene entered into a worldwide research collaboration and license agreement last year for the development of novel, small molecule, kinase inhibitors for the treatment of ocular diseases, excluding cancer.