October 21, 2019 / 3:03 PM / a month ago

UPDATE 1-Knight Therapeutics to purchase Biotoscana in $281 mln deal

(Adds deal details, context)

SAO PAULO, Oct 21 (Reuters) - Knight Therapeutics will buy Brazilian pharmaceutical company Biotoscana Investments in a deal valued at 1.16 billion reais ($281 million) that will create a pharmaceutical platform in fast growing markets in Latin America.

In a securities filing on Monday, Knight said it will acquire a 51% interest in Biotoscana for 596 million reais ($144 million) from controlling shareholders Advent International and Essex Woodlands.

The Canadian company will pay 10.26 reais per share, with an implied 22% premium over 30-day average price of Biotoscana shares.

Knight will launch a mandatory tender offer to acquire the remaining 49% from public shareholders in similar terms.

Shares of Knight rose 5 percent in Toronto trading, while those of Biotoscana were up 5.4% at 10.26 reais in mid-morning trading in Sao Paulo.

Knight Chief Executive Jonathan Ross Goodman said in a statement the “transformational deal,” with Biotoscana’s focus on oncology and onco-hematology. The combined company will operate in 10 countries in the region, the statement said. Talks between Biotoscana’s shareholders and Knight Therapeutics were reported earlier this month. ($1 = 4.1330 reais) (Reporting by Tatiana Bautzer; editing by David Evans and Steve Orlofsky)

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