Astellas moves in on OSI Pharmaceuticals
pharmafile | March 2, 2010 | News story | Sales and Marketing | Astellas, Astellas Pharma Europe, OSI
Astellas has launched a hostile takeover bid for OSI Pharmaceuticals, going directly to stockholders with a proposal that values the US biotech at $3.5 billion.
It took the step after OSI rebuffed a series of advances, the first in January 2009, saying they undervalued the company.
Astellas chief executive Masafumi Nogimori said: “This offer follows our attempts over the past 13 months to engage OSI in meaningful discussions. We firmly believe in the compelling strategic rationale behind the combination and the opportunity it provides to the OSI stockholders to realise full and fair value, in cash, immediately.
“As recently as February 12, 2010, Astellas presented this proposal to acquire OSI, which reflected a 50% premium on that date. However, we received a response stating that our offer ‘very significantly undervalues’ OSI.”
OSI primarily focuses on the discovery, development and commercialisation of molecular targeted therapies addressing medical needs in oncology, diabetes and obesity.
OSI chief executive Colin Goddard said the board would review the proposal with its financial and legal advisors and he advised stockholders to take no action at this time.
His company’s oncology strength is of most interest to Astellas, whose growth strategy entails becoming a global leader in the therapy area.
OSI discovered the non-small cell lung cancer and pancreatic cancer treatment Tarceva (erlotinib), which it sells in partnership with Roche, and its pipeline includes several prospective new oncology medications.
Astellas says acquiring OSI would provide it with a top-tier oncology business in the US and an expanded product portfolio and pipeline.
To try and help it win over OSI’s investors and employees Astellas has set up a website to provide further details about itself and its offer.
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