Speaking of mergers (maybe there's hope of LGND being taken over!):
Elan to Buy Neurex for $741 Million,
Third U.S. Purchase by Drug Maker
An INTERACTIVE JOURNAL News Roundup
Keeping up a rapid pace of U.S. acquisitions, international drug maker
Elan Corp. Wednesday agreed to acquire California-based
biopharmaceuticals firm Neurex Corp. in a stock swap valued at about
$741 million.
The deal marks Elan's third U.S. acquisition this year as it builds up its
inventory of acute-care treatments.
Elan, based in Athlome, Ireland, said the terms of the deal call for each
common share of Neurex to be exchanged for 0.51 of an Elan share.
Based on Tuesday's closing price of $62.375, Elan is paying $31.81 for
each Neurex share, a 61% premium over Neurex's closing price of
$19.75 Tuesday. Neurex had 23.3 million shares outstanding as of March
31.
Neurex, based in Menlo Park, Calif., researches and develops acute-care
products. In September 1997, the FDA approved the company's
high-blood-pressure drug, Corlopam. The company's other major
acute-care drug is a chronic-pain reliever, SNX-111 or ziconotide.
Neurex is hoping to win approval for that treatment by the second half of
1999.
Analysts have said SNX-111 holds far greater potential than Corlopam.
Injected by a pump into the spinal cord, SNX-111 is geared for use in
intensive-care units, emergency rooms, surgery suites and chronic-pain
centers. Neurex is hoping it can persuade doctors to use SNX-111
instead of morphine, when possible, because it isn't a narcotic.
Last week, Neurex reported first-quarter results, posting a wider loss of
$10.6 million, or 47 cents a diluted share, on revenue of $2.4 million. In
the year-ago quarter, the drug-maker lost $7.6 million, or 35 cents a
diluted share.
The Elan-Neurex transaction, which has been approved by the boards of
both companies, is subject to shareholder approval, clearance by Irish and
U.S. regulatory authorities and other customary conditions.
Elan said it expects to complete the transaction in the third quarter.
Last week Elan agreed with GWC Health Inc. to buy its U.S.-based
privately owned Carnrick Laboratories Inc. unit for $150 million. That
deal followed Elan's February agreement to buy the Florida-based Sano
Corporation for $375 million. |
