It appears that SMMX is going to receive a $42 million (pre-tax) windfall. Amgen haws agreed to acquire Ilypsa for $420 million. SMMX owns a 10% piece of Ilypsa.
In January 2003, the Company formed Ilypsa, Inc. ("Ilypsa"), formerly known as Symyx Therapeutics, Inc., as a wholly-owned subsidiary. In connection with the formation of Ilypsa, the Company licensed to Ilypsa exclusive rights to certain of the Company's intellectual property within a specific field with no cost basis to the Company, while retaining the rights to use and commercialize certain data generated by Ilypsa outside its field...The Company accounts for its ownership interest in Ilypsa on the equity method as the Company and its affiliates do not control the strategic, operating, investing, and financing activities of Ilypsa. As the Company's investment in Ilypsa has no cost basis for accounting purposes under generally accepted accounting principles, the Company has not recorded any proportionate share of Ilypsa's operating losses in its financial statements since the completion of Ilypsa's initial financing.
sec.gov
Symyx Technologies to Benefit From Minority Interest in Ilypsa
Tuesday June 5, 8:00 am ET
Company Created Using Symyx High-Throughput Technologies Expected to Be Acquired by Amgen for $420 Million
SANTA CLARA, Calif.--(BUSINESS WIRE)--Symyx Technologies, Inc. (Nasdaq:SMMX - News), a global leader in helping companies maximize the effectiveness and success of their R&D programs, today announced that Ilypsa, a company formed in 2003 as a spin-out from Symyx, is expected to be acquired by Amgen, a leading human therapeutics company in the biotechnology industry. Under the terms of the agreement, Amgen is expected to pay $420 million in cash to acquire Ilypsa, subject to customary closing conditions, including regulatory approvals, and is expected to close in the third quarter of 2007. Symyx owns approximately 10% of Ilypsa, on a fully diluted basis, which it received in exchange for the transfer of certain intellectual property and technology at the time of Ilypsa's formation.
"The success of Ilypsa is a testament to the value creation potential within Symyx," said Isy Goldwasser, president of Symyx Technologies. "While we are pleased with the expected financial outcome, we are especially pleased that Ilypsa demonstrates how Symyx technology, when paired with a very talented team having domain expertise, can create valuable products in record time."
Using Symyx's proprietary high-throughput discovery and development platform, Ilypsa has rapidly created non-absorbed polymeric phosphate binder to treat hyperphosphatemia in chronic kidney disease patients on hemodialysis, and has additional programs in kidney, infectious and metabolic diseases.
<snip>
biz.yahoo.com |
