Bristol-Myers (BMY) Acquires Inhibitex (INHX) at 163% Premium

January 7, 2012 11:16 PM EST
Late Saturday, Bristol-Myers Squibb Company (NYSE: BMY) announced a definitive agreement to acquire Inhibitex, Inc. (Nasdaq: INHX) for $26.00 per share in cash, or approximately $2.5 billion.

The offer comes at a 163 percent premium to Inhibitex's closing price of $9.87 on Friday.

Inhibitex's lead HCV asset is INX-189, an oral nucleotide polymerase (NS5B) inhibitor in Phase II development that has exhibited potent antiviral activity, a high barrier to resistance and pan-genotypic coverage.

"The acquisition of Inhibitex builds on Bristol-Myers Squibb's long history of discovering, developing and delivering innovative new medicines in virology and enriches our portfolio of investigational medicines for hepatitis C,” said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. “There is significant unmet medical need in hepatitis C. This acquisition represents an important investment in the long-term growth of the company."

The transaction is expected to be dilutive to earnings for Bristol-Myers Squibb through 2016, with an expected impact on earnings per share of approximately $0.04 in 2012 and approximately $0.05 in 2013.

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