Hospira and Javelin Pharmaceuticals to merge
Hospira will initiate tender offer to acquire Javelin
US pharmaceutical and drug delivery company Hospira and Javelin Pharmaceuticals have entered into a definitive merger agreement providing for the acquisition of Javelin by Hospira for US$145m.
The acquisition of Javelin would allow Hospira to take advantage of synergies between Javelin's main product candidate, Dyloject, a post-operative pain management drug currently awaiting US FDA approval, and Hospira's proprietary sedation agent, Precedex.
Dyloject is a proprietary non-opioid analgesic that will help reduce the need for traditional intravenous opioids. Hospira would have global rights to Dyloject with the exception of Europe, where rights are currently licensed to a third party. Hospira plans to market the product in the US, Canada, Latin America and the Asia-Pacific region. These are areas where Hospira also markets Precedex, and represent a good fit for Hospira's Precedex and acute-care strategy.
‘Dyloject would broaden Hospira's pain management portfolio and offers attractive revenue and margin prospects,’ said Ron Squarer, chief commercial officer, Hospira. ‘Dyloject is also a very good fit with Precedex, and further demonstrates Hospira's strong commitment to the acute-care space.’
Hospira expects to commence a tender offer for all outstanding shares of Javelin common stock imminently, in accordance with the terms of the merger agreement.
