Well so much for any hopes of a bidding war:
J&J to buy Scios for $2.4 bln, gains heart drug
- Feb 10, 2003 08:56 AM (Reuters)
- finance.lycos.com
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NEW BRUNSWICK, N.J., Feb 10 (Reuters) - Johnson & Johnson
(NYSE:JNJ) said on Monday it agreed to buy biotechnology company
Scios Inc. (NASDAQ:SCIO) for about $2.4 billion, giving J&J a new
congestive heart drug and rights to Scios' experimental
arthritis medicine.
Under the terms of the agreement, Scios shareholders will
receive $45.00 for each outstanding Scios share. Shares of
Scios had jumped 22 percent to close $42.20 Friday on news the
two companies were in merger talks.
The value of the deal is expected to be about $2.4 billion,
net of cash, based on Scios' 59.8 million diluted shares
outstanding.
Scios, which has a drug on the market for congestive heart
failure, is developing an oral rheumatoid arthritis drug that
could compete with injectable treatments such as Amgen Inc.'s
(NASDAQ:AMGN) Enbrel and Johnson & Johnson's Remicade.
Copyright 2003, Reuters News Service |
