OSI Pharmaceuticals (OSIP) Gets Its Price, But Not Investors'
Japanese drug maker Astellas Pharma Inc. has agreed to buy OSI Pharmaceuticals Inc. (NASDAQ: OSIP) for $4 billion in a move that will expand its cancer drug business in the U.S.
The deal announced on Monday will see Astellas pay OSI $57.50 per share, which is raised from the previous offer of $52 per share. The transaction is expected to be completed within the next month and will end the 14-month negotiations which began in January 2009.
This is an all cash transaction with no financing conditions to be worked through.
"The merger with OSI provides Astellas with a top-tier oncology platform in the U.S. 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,” Masafumi Nogimori, President and Chief Executive Officer of Astellas, said.
Astellas will add OSI's drugs to its portfolio including the lung cancer treatment Tarceva, which saw $1.2 billion in global sales last year.
In addition, Astellas is planning to work with OSI on the development of its treatments for cancer of the prostate, breast, skin, pancreas and ovaries. Apart from cancer treatments, OSI focuses on drugs for diabetes and obesity.
"We believe today's announcement recognizes 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," Colin Goddard, Ph.D., Chief Executive Officer of OSI Pharmaceuticals, said.
The companies are working together to develop a transition plan, and the fate of the management team for OSI was not made immediately clear.
Shares of OSI Pharmaceuticals are down 4.06 percent to $57.38 in midday market movement Monday.
The deal announced on Monday will see Astellas pay OSI $57.50 per share, which is raised from the previous offer of $52 per share. The transaction is expected to be completed within the next month and will end the 14-month negotiations which began in January 2009.
This is an all cash transaction with no financing conditions to be worked through.
"The merger with OSI provides Astellas with a top-tier oncology platform in the U.S. 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,” Masafumi Nogimori, President and Chief Executive Officer of Astellas, said.
Astellas will add OSI's drugs to its portfolio including the lung cancer treatment Tarceva, which saw $1.2 billion in global sales last year.
In addition, Astellas is planning to work with OSI on the development of its treatments for cancer of the prostate, breast, skin, pancreas and ovaries. Apart from cancer treatments, OSI focuses on drugs for diabetes and obesity.
"We believe today's announcement recognizes 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," Colin Goddard, Ph.D., Chief Executive Officer of OSI Pharmaceuticals, said.
The companies are working together to develop a transition plan, and the fate of the management team for OSI was not made immediately clear.
Shares of OSI Pharmaceuticals are down 4.06 percent to $57.38 in midday market movement Monday.
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