Hyseq to buy Variagenics for about $56 mln
Monday November 11, 7:09 am ET
SUNNYVALE, Calif., Nov 11 (Reuters) - Hyseq Pharmaceuticals Inc. (NasdaqNM:HYSQ - News) on Monday said it signed an agreement to merge with Variagenics Inc. (NasdaqNM:VGNX - News), a deal valued by the companies at approximately $56 million and expected to close by February 2003.
Under the agreement, each share of Variagenics will be exchanged for approximately 1.6 shares of Hyseq, implying a purchase price of $2.22 per share of Variagenics. That is more than double the Friday closing price of 96 cents on Variagenic's shares. The price values the deal at $55.9 million, including options and warrants.
Drug developer Hyseq will retain leadership of the combined company, the firms said. Dr. Ted Love, Hyseq's chief executive, will assume that role in the new firm. Dr. George Rathmann, Hyseq's chairman, will continue as chairman of the new firm. Most operations will be based at Hyseq's base in Sunnyvale, California.
The combined company will have approximately 110 to 120 employees, the firms said. Some operations will reside in Cambridge, Massachusetts, where Variagenics is based. A new name for the company has not been determined.
Hyseq uses a database of proprietary genes to create drugs, and is currently developing Alfimeprase, a drug to treat thrombosis. Variagenics studies the connection between genetics and drug response to help its partners develop cancer drugs and diagnostic products. |
