Japanese pharmaceutical giant Dainippon Sumitomo Pharma Co. has completed its $2.6 billion acquisition of Sepracor Inc., triggering change-in-control provisions at the local drug maker that could deliver roughly $11 million in pay and benefits to CEO Adrian Adams.
According to an April 3 regulatory filing by Marlborough, Mass.-Sepracor, Adams stands to receive a $5.6 million severance payment and another $302,892 to cover such personal expenditures as life insurance premiums, automobile expenses, a housing allowance and a medical-insurance opt-out payment. Another $4.2 million in restricted stock also is scheduled to vest, now that a change in control has occurred. The value of those vested shares is based on Dainippon Sumitomo Pharma’s $23-per-share acquisition price.
Adams also is set to receive $867,790 in tax gross-up payments to help cover the tax liabilities stemming from his change-in-control compensation.
The payment and stock-vesting only go into effect if Adams remains with the company after the change-in-control occurs. The deal officially closed Oct. 20.
Adams, who was 58 as of Sepracor’s April filing, has been the company’s CEO and president since 2007.
News 
Market Data 
Discover 
AI
