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Biotech / Medical : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: rkrw who wrote (1449)	2/7/2003 9:55:58 AM
From: Biomaven	Read Replies (1) \| Respond to of 3158

Note a scios merger is far from assured. As you were saying... Scios/Talks -2: Reportedly In Talks With Johnson & Johnson - Feb 7, 2003 09:40 AM (Dow Jones Business News) - finance.lycos.com =========================================================================== SUNNYVALE, Calif. -(Dow Jones)- Scios Inc. (SCIO) confirmed that it is talks with a number of life sciences companies concerning potential strategic transactions. The Friday edition of The Wall Street Journal reported that Johnson & Johnson (JNJ) is in advanced discussions to buy Scios for about $2 billion, citing people familiar with the situation. In a press release Friday, Scios said the transactions being discussed include partnering arrangements for its p38 MAP kinase inhibitor program as well as possible mergers. Scios noted that no agreement has been reached with respect to any of these potential strategic transactions. The Wall Street Journal said that negotiations between the two companies have been progressing for several weeks, but no deal has been reached. Under the terms being discussed, Johnson & Johnson would pay about $45 a share for Scios, an unprofitable biotechnology company that sells one drug and is developing another that has created a big buzz in the healthcare industry. Scios has been searching for a marketing partner for an experimental oral drug to treat rheumatoid arthritis, a painful degenerative joint condition. Like many of its rivals, Johnson & Johnson needs to develop new drugs in the face of rising competition. But due to the risk and expense related to the process, large pharmaceutical companies look for new drugs via acquisitions or complicated licensing agreements. Shares of Scios closed Thursday up 89 cents, or 2.6%, to $34.69. The company reported a loss of 47 cents a share for the third quarter ended Sept. 30, wider than a a loss of 25 cents a share in the year-ago period. -Thomas Gryta; Dow Jones Newswires; 201-938-5400 As I posted in the SCIO thread, I'm hoping for a bidding war. <g> Peter P.S. Strange that anyone would want to buy one of Dow Jones' well known "unprofitable biotechnology compan[ies]." <g>