(Reuters) - Israel's Teva Pharmaceutical Industries (TA:TEVA) (N:TEVA) said it would buy U.S. drug developer Auspex Pharmaceuticals Inc (O:ASPX) for $3.5 billion (2.36 billion pounds) to boost its portfolio of treatments for the central nervous system.
Teva, the world's largest maker of generic drugs, will offer $101 per share in cash, representing a premium of 42.4 percent to Auspex's Friday closing price, the companies said on Monday.
Teva said it expects the deal, to be financed with cash on hand, to add to revenue from 2016 and to adjusted earnings per share beginning in 2017.
The transaction has been unanimously approved by the boards of Teva and Auspex and key shareholders of Auspex have entered into agreements indicating their support for the transaction.
Auspex's main product, SD-809, is being developed for the potential treatment of chorea, an abnormal involuntary movement associated with Huntington's disease and Tourette syndrome. SD-809 for Huntington's disease is expected to win regulatory approval and be launched commercially in 2016, Teva said.