Plymouth Meeting-based Harmony Biosciences Holdings, a pharmaceutical company specializing in the treatment of rare neurological diseases, recently entered into an agreement to purchase Devon-based Zynerba Pharmaceuticals, a producer of transdermal cannabinoid therapies for orphan neuropsychiatric disorders, for $60 million.
Under the terms of the agreement, Harmony will acquire all outstanding Zynerba shares along with one non-tradeable contingent value right (CVR) per share. The CVR is subject to the achievement of certain clinical, regulatory and sales milestones, and represents the right to receive potential additional payments of up to $140 million.
Milestones include the completion of a Fragile X syndrome Phase 3 clinical trial, achieving $250 million in aggregate net sales, and achieving $500 million in aggregate net sales.
“This is an important step in Harmony’s strategy to build a diversified portfolio of innovative assets to address unmet medical needs and drive our long-term growth,” Dr. Jeffrey M. Dayno, Harmony Biosciences, president and CEO, said. “This acquisition affords us the opportunity to advance the development and delivery of a potentially transformative treatment for the symptoms of Fragile X syndrome and other rare neuropsychiatric disorders.”
The deal is expected to close during the third quarter and is subject to customary closing conditions.