Japanese drug and health goods maker Hisamitsu Pharmaceutical Co said on Tuesday it would buy Miami-based Noven Pharmaceuticals Inc for $430 million to expand in the United States.
Hisamitsu, which makes Salonpas-brand adhesive patches for muscle strains, has agreed to pay $16.50 for each Noven share. The price represents a 38 percent premium on Noven's 50-day moving average share price of $11.95.
Noven confirmed the deal and added, following the merger agreement, Jeffrey Eisenberg will be named Noven's president and chief executive.
The deal would make Noven a wholly-owned subsidiary when completed in August, raising Hisamitsu's stake in the firm up from its current 4.98 percent stake.
Noven, which specialises in hormone therapies for women, said it would remain a standalone business.
Shares of Hisamitsu closed down 1.6 percent at 3,180 yen ahead of the announcement, underperforming the Nikkei average's .N225 2.3 percent rise. Noven's latest closing share price was at $13.48.
(Reporting by Mayumi Negishi; Editing by Mike Nesbit)