Astellas set to acquire OSI Pharmaceuticals for $4bn
pharmafile | May 17, 2010 | News story | Research and Development, Sales and Marketing | Astellas, M&A, MA, OSI
After four months and several failed bids Astellas Pharma has signed a definitive merger agreement with US biotech firm OSI Pharmaceuticals.
The deal sees Astellas raise its bid to $4 billion in cash terms, offering $57.50 per share which represents a premium of 55% to the closing price of OSI’s shares of $37.02 on 26 February, when Astellas tendered its last offer.
The oncology and metabolic specialist had previously rejected several bids from the Japanese pharma company, the first in January when OSI felt Astellas had “significantly under-valued” its company.
Astellas then went directly to OSI shareholders in a $3.5 billion hostile bid in March, which was swiftly rejected by the board, who again said the offer did not reflect the “intrinsic value” of the US pharma.
The merger will significantly increase Astellas’ top-tier oncology business in the US as well as expanding its product portfolio and pipeline in diabetes and obesity.
Masafumi Nogimori, president and chief executive of Astellas, said: “The merger with OSI provides Astellas with a top-tier oncology platform in the US and an expanded product portfolio and pipelines. In addition to Tarceva, we are pleased to add its oncology infrastructure, discovery platform, expanded pipelines and talent base to our existing businesses.”
The pancreatic and non-small cell lung cancer drug Tarceva is OSI’s biggest treatment.
Developed and commercalised with Roche, via its biotech arm Genentech, the drug last year earned sales of $1.2 billion in 2009, which OSI split equally with the Swiss pharma, as well as receiving royalties on sales outside the US.
Colin Goddard, chief executive of OSI Pharmaceuticals, said: “We believe today’s announcement recognises the significant value we have built for our stockholders while providing the merged companies the opportunity to forge a stronger collective path forward in a shared mission to provide innovative new medicines to patients around the world.”
OSI’s total revenue for 2009 was $428 million with primary contributions from Tarceva.
Ben Adams
Related Content
Astellas and Elpiscience enter collaboration for novel bispecific macrophage engager
Elpiscience Biopharma and Astellas Pharma have announced that they have entered into a research collaboration …
EMA accepts Astellas’ MAA for Zolbetuximab
Astellas Pharma has announced that the European Medicines Agency (EMA) has accepted the company’s marketing …
Astellas and Cullgen enter into $1.9bn strategic collaboration to progress protein degraders
Japanese pharmaceutical company Astellas and US-based clinical-stage biopharmaceutical company Cullgen have announced that they have …
