- Otsuka Pharmaceutical has acquired Mindset Pharma (CSE:MSET), a microcap psychedelic stock developing medications to treat neuropsychiatric and neurological disorders with unmet medical needs
- The all-cash deal values Mindset at C$80 million or $0.75 per share
- Mindset Pharma’s innovations include psychedelic compounds and a process to chemically synthesize psilocybins and other proprietary compounds
- Mindset Pharma stock (CSE:MSET) last traded at $0.65 per share
Otsuka Pharmaceutical has acquired Mindset Pharma (CSE:MSET), a microcap psychedelic stock developing medications to treat neuropsychiatric and neurological disorders with unmet medical needs.
Subsidiary Otsuka America will acquire the company for C$80 million in an all-cash transaction. Each Mindset shareholder will receive $0.75 in cash per share, representing a 15.4 per cent premium to the closing price on Aug. 30. Holders of MSET options and warrants will receive cash for their “in-the-money” value.
Mindset’s board believes the acquisition is in the interest of shareholder value.
“We are thrilled to announce this all-cash transaction with Otsuka as we believe it maximizes value and is a great outcome for all Mindset stakeholders. We believe Otsuka is ideally positioned to maximize the value of the Mindset assets and IP portfolio to the future benefit of patients,” James Lanthier, CEO of Mindset, said in a statement.
“Otsuka Pharmaceutical has designated psychiatry and neurology as one of its top priority therapeutic areas and has been developing antipsychotic agents with clinical significance on a global basis. With the addition of Mindset’s novel compounds and synthesis processes, we expect this acquisition will further contribute to the treatment of patients suffering from psychiatric disorders,” Makoto Inoue, president of Otsuka, said in a statement.
The transaction remains contingent on shareholder approval. A special meeting for this purpose is slated for October.
Closing is expected by Oct. 19.
About Otsuka
Otsuka Pharmaceutical researches, develops, manufactures and markets nutraceutical products for the maintenance of everyday health and pharmaceutical products to meet unmet medical needs in mental, renal and cardiovascular health, as well as oncology and tuberculosis.
The company operates three affiliate companies in North America with 2,140 employees focused on developing and commercializing medicines in mental health and nephrology.
Otsuka Pharmaceutical is a subsidiary of Otsuka Holdings, based in Tokyo. The Otsuka group of companies employs 47,000 people worldwide and achieved sales of approximately US$13.1 billion in 2022.
About Mindset
Mindset Pharma is creating optimized and patentable next-gen psychedelic medicines for neurological and psychiatric disorders. These developments include psychedelic compounds and a process to chemically synthesize psilocybins and other proprietary compounds. The company has had a co-development agreement with the MSRD, a member of the Otsuka Pharmaceutical family of companies, covering multiple drug development programs.
Mindset Pharma stock (CSE:MSET) last traded at $0.65 per share.
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