The months-long saga is finally over: Astellas’ enhanced offer of $57.50 a share—around $4 billion—has finally netted it Melville, NY-based OSI Pharmaceuticals.
The Japan-based pharma first extended an acquisition offer of $52 per share ($3.5 billion) to OSI on March 1, only to be met with a resounding “Nay” from the board, which said $52 a share was a “very significant undervalue” of the company. Proceedings then got a bit dicey after Astellas filed a suit against OSI to prevent any use of a “poison pill” rights policy, and rumors swirled about a possible acquisition by Roche instead.
Now the two have come to terms; OSI CEO Colin Goddard is pleased with the appreciation the higher offer shows, and Astellas is pleased with its shiny new oncology pipeline. The company has recently been bucking for the title of “Global Category Leader in Oncology”—which is a steep task when you don’t have any oncology drugs in development. Astellas already has cardiology, neuroscience, immunology, and infectious disease covered, as well as urology and dermatology.
OSI currently has just one drug on the market: pancreatic and non-small cell lung cancer treatment Tarceva (erlotinib). However, that one product netted the company $428 million in 2009, and three others are coming down the late-stage pipeline.
OSI has until June 2 to accept the offer (a 16-day extension from the previous deadline), though Astellas had already acquired 229,214 shares as of May 14.