Published: Wednesday June 13, 2012 MYT 3:28:00 PM

Upsher-Smith to buy Proximagen for up to 357 mln stg

Upsher-Smith Laboratories Inc said it would buy drug developer Proximagen Group Plc for 223 million pounds in cash and 133.80 million pounds in potential milestone payments.

USL, a subsidiary of pharmaceutical company Upsher-Smith, offered to pay 320 pence for each Proximagen share and a further 192 pence per share in either cash or loan notes by way of a contingent value right.

Upsher-Smith holds 16 percent in Proximagen, which focusses on Parkinson's disease, epilepsy, cognition and neuropathic pain.

"The acquisition represents a very good opportunity for Proximagen's portfolio of programmes to benefit from the extensive resources of Upsher-Smith and the consequent progress in their development," Upsher-Smith said in a statement.

USL would fund the cash consideration by existing cash and debt facilities. USL has already received commitments from Proximagen's directors and shareholders who hold about 72 percent of the company's shares to vote in favour of the deal.

Shares of Proximagen closed at 275 pence on the London Stock Exchange on Tuesday. ($1 = 0.6432 British pounds) - Reuters

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