×

UPDATE 1-Mitsubishi Tanabe Pharma to buy Israel's Neuroderm for $1.1 bln in U.S. push

U.S. push@

* All-cash deal expected to close in Q4 2017

* Deal to help Japanese firm hit 2020 U.S. sales target (Adds details of deal, Neuroderm's pipeline)

TOKYO, July 24 (Reuters) - Japan's Mitsubishi Tanabe Pharma Corp is acquiring Israeli drug maker Neuroderm for $1.1 billion in cash as part of a strategy to grow its business in the United States.

The Japanese drugmaker said in a statement on Monday it would leverage Neuroderm's Parkinson's disease drug product that has commenced clinical trials in the United States and Europe and is expected to launch in financial year 2019.

It said the acquisition is intended to help it "achieve its U.S. sales target of 80 billion yen by FY2020".

The deal will be one of the largest ever purchases of an Israeli firm by a Japanese company, surpassing internet retailer Rakuten Inc's $900 million acquisition of chat app Viber in 2014.

Mitsubishi Tanabe Pharma will pay $39 dollars for each Neuroderm share, a premium of about 17 percent to its Friday close. The deal is expected to close in the fourth quarter of 2017. (Reporting by Sam Nussey; Additional reporting by Tova Cohen in Tel Aviv; Editing by Muralikumar Anantharaman)