Novacea (NOVC) off 40% on an all stock take out by a private company.
>>UPDATE 1-Novacea to be acquired by Transcept Pharmaceuticals
Tue Sep 2, 2008 8:07am EDT
Sept 2 (Reuters) - Biopharmaceutical company Novacea Inc (NOVC.O: Quote, Profile, Research, Stock Buzz) said it agreed to be acquired by privately held Transcept Pharmaceuticals Inc in an all-stock deal, under which Transcept stockholders will own 60 percent of the combined company.
Shares of Novacea closed at $2.35 Friday on Nasdaq.
Novacea stockholders will own 40 percent of the combined company, and the deal is expected to close during the fourth quarter of 2008 or the first quarter of 2009.
In a regulatory filing, Novacea said its executive officers will resign and Transcept's management will take charge of the combined company.
The new board is expected to consist of a total of ten members, six of whom will be from Transcept and four from Novacea.
The new company will be named Transcept Pharmaceuticals and is expected to be listed on the Nasdaq under a different ticker symbol.
Transcept, which focuses on developing prescription sleep medicine and psychiatry drugs, expects to file for approval for its insomnia drug Intermezzo by the end of 2008.
The estimated cash balance of $88 million to $92 million of the combined companies will be used to launch Intermezzo, the companies said in a joint statement. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Anil D'Silva)<<
I don't know anything about Intermezzo, but I do know the sleep market is crowded.
Cheers, Tuck |
