Dainippon to Buy Sepracor for $2.7 Billion: Sources

BOSTON/TOKYO (Reuters) - Dainippon Sumitomo Pharma Co Ltd <4506.T> has agreed to buy U.S. drugmaker Sepracor Inc for $2.7 billion, two sources said, in a move that would give the Japanese firm a much needed U.S. sales force.

Japan's No.7 drugmaker in terms of revenue would gain a 1,000-strong sales force familiar with central nervous disorders, to promote its experimental schizophrenia drug, which has performed well in late-stage trials.

It would also gain Sepracor's insomnia drug Lunesta, asthma drug Xopenex and an experimental epilepsy drug.

An announcement of the friendly, negotiated deal was imminent, said one of the sources familiar with the situation, who declined to be named as he was not authorized to speak to the media.

The deal would be structured as a tender offer, but has been approved by both companies' boards, that source said.

The purchase would be the latest in a series of acquisitions by Japanese drugmakers of U.S. rivals as they seek to beef up their drug pipelines and their presence in the world's largest pharmaceuticals market.

Dainippon Sumitomo said it was not able to comment.

Its shares climbed 3 percent in a weaker Tokyo market <.N225>, in triple the average 30-day volume, though some analysts said the deal looked expensive.

The deal would value Sepracor's shares at around $23 each, based on the number of shares outstanding at end-July -- a premium of more than 27 percent above the stock's Tuesday close of $18.03.

Based on projections for 2013, the deal values Sepracor at 3.5 times sales, compared with 3.1 times for the average of other specialty pharmaceutical and generic drug industry acquisitions, said Aaron Gal, an analyst at Sanford Bernstein.

It also values Sepracor at 19.4 times EBITDA (earnings before interest, taxes, depreciation and amortization) compared with an average of 15.1 times for other deals, he said.