Sumitomo Dainippon Pharma offers A$202 mil. for Australian stem cell company

23, Jul. 2019

SYDNEY, NNA - Japanese pharmaceutical firm Sumitomo Dainippon Pharma Co. has offered A$202 million ($142 million) to buy Australian stem cell company Cynata Therapeutics Ltd. in an apparent effort to expand its business in regenerative medicine.

Sumitomo has offered A$2 per share for all of the shares in Cynata, the Australian company said Friday in a statement.

The Osaka-based firm admitted the two have negotiated the buyout proposal but added a final decision has yet to be made.

Sumitomo sees regenerative medicine and cell therapy as a key area for research and development and seeks global opportunities, according to its financial statement for fiscal 2018.

Based in the state of Victoria, Cynata specializes in developing stem cell treatment by using discoveries made at the University of Wisconsin-Madison in the Unites States, its lead product being a treatment for graft versus host disease, a complication that occurs after transplant, according to the company's website. (NNA/Kyodo)