Japanese drug-manufacturer Dainippon Sumitomo Pharma Co. said on Thursday that it was close to an agreement to buy US-based Sepracor.

Osaka-based Dainippon Sumitomo Pharma Co. has reportedly plans to Sepracor for 250 billion yen or $2.7 billion.

A Dow Jones Newswires reported, citing a Dainippon spokesman saying, "It is true that we are in the final stage of negotiations to acquire a U.S. company." 

The Osaka-based company plans to submit the experimental schizophrenia drug, Lurasidone, for US regulatory approval in 2010.

The potential deal will allow Dainippon to open a sales channel in the U.S. for its new schizophrenia drug.

Sepracor, which has around 1,300 sales representatives, had reported $1.292 billion in sales for 2008, gaining 5.5 per cent from the last year.

Shares in Dainippon Sumitomo Pharma surged as much as 8 per cent on the news of planned takeover. Share of the company also jumped on Nasdaq, gaining 26 per cent to close at $22.80.