CV Therapeutics rejects Astellas takeover bid
pharmafile | February 23, 2009 | News story | Sales and Marketing | Astellas, CV Therapeutics
Biotech company CV Therapeutics has rejected a second take-over offer from Astellas, saying the Japanese group failed to recognise its true value.
Astellas, which offered to acquire California-based CV Therapeutics for $16 per share in cash, says it is disappointed by the rejection but remains committed to its bid.
In a statement Astellas said it would it was "considering all the options that are available to us to move our offer forward".
The company's move follows the increasing momentum within the industry for consolidation over recent months. This year has already seen deals ranging from Pfizer's $68 billion takeover of Wyeth to Lilly's $30 million investment in Danish biotech NeuroSearch.
Behind Astellas' pursuit of CV Therapeutics, which discovers and develops drugs that treat cardiovascular diseases, lays a desire to strengthen its portfolio and offset upcoming patent losses.
In particular, CV Therapeutic's angina treatment Ranexa would complement Astellas' US based hospital and cardiology business, the pharma company said.
It added that its established infrastructure and proven track record in drug development and commercialisation would provide an ideal platform to increase the biotech's inherent value.
But this is the second time CV Therapeutics has rejected a bid from Astellas, having first turned down a similar offer in November 2008.
On 20 February, CV Therapeutics chief executive Louis Lange again concluded that Astellas had significantly undervalued its potential growth opportunities. He said CV Therapeutics had its own strategic plan in place that it believed would enhance shareholder value.
Astellas responded to say it was regrettable it had been left out of the discussion when its proposal was reviewed, but claims to stand by its valuation of the company.
Neither company has yet said whether they will negotiate the bid further.
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