Cynapsus surges 113% after selling to Sunovion for $624M

Cynapsus Therapeutics (CYNA) stock surged in post-market trading, roughly doubling its 52-week high, after the drugmaker announced it will be acquired by Sunovion Pharmaceuticals, a wholly-owned subsidiary of Sumitomo Dainippon Pharma. WHAT'S NEW: After the market close, Cynapsus and Sunovion jointly announced a definitive agreement under which Sunovion will purchase Cynapsus for $40.50 per share in cash, valuing the company at roughly $624M. The deal is expected to close in the fourth quarter of 2016, the companies said. As a result of the deal, Sunovion would acquire Cynapsus' product candidate, APL-130277, which is designed to be a fast-acting treatment for managing "off" episodes associated with Parkinson's disease. WHAT'S NOTABLE: The merger agreement comes just a few days after Cynapsus said the U.S. FDA had granted Fast Track Designation for APL-130277. "The FDA's recognition of the significant need to address off episodes in Parkinson's disease with the Fast Track Designation is further validation of the value in our fast-acting, thin strip approach," Cynapsus CEO Anthony Giovinazzo remarked at the time. The CEO also noted in the statement that the company expects to submit a New Drug Application in the first half of 2017. PRICE ACTION: In after hours trading, Cynapsus surged 113.51% to $39.20.