Upsher-Smith Laboratories, a privately-owned specialty pharmaceutical company of Maple Grove, Minn., has agreed to acquire Proximagen Group, a European biotech focused on the development and commercialization of novel therapeutics for diseases of the central nervous system and inflammation. Upsher-Smith intends to retain operations in Cambridge and London, England.

The acquisition provides Upsher-Smith with expanded R&D capabilities and a platform for future growth in product development. Proximagen’s pipeline contains a number of programs in various stages of development across a number of therapeutic classes including central nervous system, inflammation, oncology and ophthalmology.

“We have been very impressed with the quality and breadth of Proximagen’s portfolio of programs, and the commitment and expertise of Proximagen’s employees,” said Mark Evenstad, president and CEO of Upsher-Smith. “Having worked closely with Proximagen as both a commercial partner and a strategic shareholder since 2008, we believe that Proximagen has significant potential and we are excited about the opportunity of bringing new therapies to market that will benefit patients.”

The transaction is subject to approval by Proximagen shareholders and the approval of the High Court of Justice in England and Wales. In addition to the unanimous recommendation from Proximagen’s board of directors, Upsher-Smith has obtained irrevocable undertakings from Proximagen shareholders to accept the deal in respect of 72.01% of the share capital, including from Proximagen’s largest shareholder, Invesco Asset Management.