Millennium Pharmaceuticals, Inc. (MLNM) Message Board

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Biotech / Medical : Millennium Pharmaceuticals, Inc. (MLNM)

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From: idos	9/30/2006 4:23:42 AM
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CIBC from September 27, 2006: On 9/26, MLNM announced an agreement to acquire ANOR for $515M in cash, or $12/share. MLNM will begin its tender offer within the next 10 days. We believe the acquisition price for ANOR is fair, based on the potential for Mozobil sales to contribute to MLNM's long-term growth. Based on our estimates, we believe the ANOR acquisition will be accretive in 2008 and beyond, assuming Mozobil is approved in 2Q08. With about $525M in net cash, and in light of the acquisition cost, we believe MLNM will have to seek financing in the near-term. Mozobil is a CXCR4 inhibitor in 2 ph.III studies for stem cell mobilization. MLNM expects to present top-line data from these trials in 2007, we think as early as 2Q. MLNM believes Mozobil may also ultimately have potential in leukemia therapy, although there is no clinical data to support this yet. We believe the ANOR acquisition makes good commercial sense, given that MLNM can leverage its oncology sales force. With the potential for ~$250M in peak Mozobil sales, we believe the deal partially addresses longer-term questions about MLNM's growth, but near-term questions remain.

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