Board of directors at both firms say combination will create world class oncology platform
Astellas Pharma, a global pharmaceutical company based in Tokyo, Japan, and US biotech OSI Pharmaceuticals, which is primarily focused on the development of molecular targeted therapies for oncology, diabetes and obesity, have signed a merger agreement.
Under the terms of the agreement, Astellas will increase its offer price to US$57.50 per share, which represents a premium of 55% to the closing price for OSI's shares of US$37.02 on 26 February, the last trading day before Astellas announced its tender offer. The boards of directors of both companies have unanimously approved the transaction.
The merger supports Astellas' aim to become a global leader in therapeutics for oncology. OSI will commercialiase Tarceva (erlotinib), a leading cancer medication. OSI's total revenues for 2009 were US$428m with an operating income of US$153m.
Masafumi Nogimori, president and chief executive of Astellas, said: ‘The merger with OSI provides Astellas with a top-tier oncology platform in the US and an expanded product portfolio and pipelines. In addition to Tarceva, we are pleased to add the firm’s oncology infrastructure, discovery platform, expanded pipelines and staff to our existing businesses.’
Colin Goddard, chief executive of OSI Pharmaceuticals, added: ‘We believe today's announcement recognises the significant value we have built for our stockholders while providing the merged companies the opportunity to forge a stronger collective path forward.’