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

To: tuck who wrote (2861)	3/30/2010 1:34:09 PM
From: tuck	Respond to of 3158

OSI trades a deeper look at the books for time to find a white knight . . . >>TOKYO, March 29 /PRNewswire/ -- Astellas Pharma Inc. (TSE:4503.to - News) confirmed today that it has entered into a confidentiality agreement with OSI Pharmaceuticals, Inc. (Nasdaq:OSIP - News). Under the agreement, OSI will provide Astellas with access to certain non-public information. This follows Astellas' approach to OSI after OSI's announcement that its board of directors had instructed its management and financial advisors to contact interested third parties regarding a potential transaction. Also, under the confidentiality agreement, until 11.59 p.m. EDT on May 15, 2010, Astellas will not acquire any shares pursuant to its outstanding tender offer, take any further action on the pending litigation initiated by it or file a preliminary or definitive proxy statement in connection with OSI's annual meeting. This agreement will terminate, among other things if OSI enters into or announces its intent to enter into an agreement with respect to an acquisition of OSI. There can be no assurance that an agreement with respect to an acquisition by Astellas for OSI will be reached. Citigroup is acting as exclusive financial advisor to Astellas and Morrison & Foerster LLP is acting as legal counsel.<< snip Cheers, Tuck

To: tuck who wrote (2861)	5/16/2010 11:07:12 PM
From: pgo-neil	Respond to of 3158

OSI is taken under at $57.50 by Astellas. Apparently no one else was interested in upping the ante more than Astellas' $5. graham -- online.wsj.com Japanese drug maker Astellas Pharma Inc. clinched a $4 billion deal Monday for cancer-drug maker OSI Pharmaceuticals Inc., ending a months-long pursuit of the Melville, N.Y., company. Astellas is paying $57.50 a share for OSI, making the deal a "takeunder," meaning that it is being bought for less than its recent trading price of $59.80. Astellas initially offered OSI $52 a share in cash, valuing the company at $3.5 billion. OSI rejected that as too low, given its potential for growth as an independent company. It also invited other potential suitors to bid. On March 29, the two companies entered into an agreement that allowed Astellas to study parts of OSI's financial records. In exchange, Astellas agreed not to buy any more OSI shares until its tender offer expired May 15. Since March, OSI shares have soared more than 60% to close Friday at $59.80 on the Nasdaq Stock Market, indicating that the market expected a higher bid from Astellas or another bidder. The price paid is still a rich one. Last year, OSI reported operating income of $153 million, meaning that Tokyo-based Astellas is paying more than 26 times last year's earnings. OSI's Tarceva drug, which targets the growth of tumor cells, is used to treat certain types of advanced lung and pancreatic cancers. OSI markets it through partnerships with Swiss drug giant Roche Holding AG, and Astellas expects it to be a high-growth product. Tarceva, whose generic name is erlotinib, also is being tested for the treatment of other types of cancer. Large drug companies have been on the lookout for new sources of revenue as patents on traditional drugs expire, and small to medium-size biotech companies with successful niche products are attractive targets. Last year, Astellas, which is Japan's second-largest drug maker, made a hostile bid for CV Therapeutics, only to be trumped by Gilead Sciences Inc. Centerview Partners LLC, Lazard Ltd. and law firm Skadden, Arps, Slate, Meagher & Flom advised OSI; Citigroup and law firm Morrison & Foerster advised Astellas.