Sumitomo Dainippon Pharma scraps plan to take over Australian stem cell firm Cynata
SYDNEY, NNA - Japanese pharmaceutical firm Sumitomo Dainippon Pharma Co. said Thursday it had withdrawn an offer to buy out Australian stem cell company Cynata Therapeutics Ltd. as the two firms could not reach agreement on terms.
The Osaka-based firm announced in July it had offered A$202 million ($142 million) to acquire Cynata, a move that would have helped it expand its regenerative medicine business. It had offered to pay A$2 per share.
Sumitomo decided to scrap the plan this month, a spokesperson for the Japanese firm told NNA without elaborating the reasons.
Sumitomo sees regenerative medicine and cell therapy as a key area for research and development, according to its financial statement for fiscal 2018. The statement says it seeks global opportunities in this area.
Cynata, based in the Australian state of Victoria, specializes in developing stem cell treatment by using discoveries made at the University of Wisconsin-Madison in the Unites States. Its lead product is a treatment for an autoimmune syndrome that can occur after stem cell transplantation, according to the company’s website.