Mitsubishi Tanabe Pharma (MTPC) has agreed to acquire Quebec-based Medicago, a biopharmaceutical company focused on developing vaccines based on proprietary manufacturing technologies and Virus-Like Particles (VLPs).

Under the arrangement, MTPC will acquire all of the issued and outstanding common shares of Medicago other than those shares currently held by Philip Morris Investments (PMI), an affiliate of Philip Morris International and MTPC, for $1.16 per share in cash. Medicago will be jointly owned by MTPC (60%) and PMI (40%).

The transaction represents a value of approximately $357 million, including the assumption of Medicago’s existing debt.

Medicago’s board of directors has approved the deal and has recommended shareholders vote in favor of it.

"MTPC’s capabilities in biopharmaceutical research, development and commercialization, along with its financial stability, offer us the ideal opportunity to realize the full potential of our platform,” said Andy Sheldon, president and chief executive officer of Medicago. “These resources provide us the ability to foster the development of innovative vaccines with the financial stability to expand our Quebec, Canadian, U.S. and global operations."