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Indevus Pharmaceuticals Inc. (IDEV) is a BUY
* Last Trade: $5.38 * Change: 0.00 * Open: $N/A * High: $N/A * Low: $N/A * Volume: 0 January 6, 2009 Breaking News Alert: Indevus Pharmaceuticals Enters Merger Agreement With Endo Pharmaceuticals - (MobiWire) Indevus Pharmaceuticals, Inc. (Nasdaq: IDEV) announced yesterday that it has entered into a definitive merger agreement under which Endo Pharmaceuticals Holdings, Inc. will commence a tender offer to acquire 100 percent of the outstanding shares of Indevus for approximately $370 million, or $4.50 per Indevus share, in cash and up to an additional approximately $267 million, or $3.00 per Indevus share, in cash payable in the future upon achievement of certain milestones related to NEBIDO (R) (in development for hypogonadism) and the octreotide implant (in development for acromegaly and carcinoid syndrome), two of Indevus' primary product candidates. The up-front consideration of $4.50 per share represents a premium of 45.2% over today's closing price of the common stock of Indevus, and a 59.0% premium over the 30-day volume weighted average price for the common stock. The transaction has been approved by the boards of directors of both companies. The Company will host a conference call and webcast on January 6, 2009 beginning at 8:30 am Eastern time (details follow below). "For many reasons, we are very pleased to bring this transaction to the shareholders and other stakeholders of the Company," said Glenn L. Cooper, M.D., chairman and chief executive officer of Indevus. "For our shareholders, the deal not only captures a significant premium in the up-front portion of the consideration, but our investors will also maintain a significant interest in the downstream value creation from NEBIDO and the octreotide implant. "Our employees, who have been so instrumental in the growth and success of Indevus, will also remain integral to the future of Endo," continued Dr. Cooper. "Our sales force, Cranbury operations, and the NEBIDO and Octreotide R&D teams are expected to play a very important role in the new Endo. In addition, Endo will look to our headquarters in Lexington, MA as a source of talent for their growing organization. "Finally, we believe this transaction will create new value for our patients, physicians, and other customers under Endo's leadership. We believe Endo's proven commercial capabilities, targeted approach to medical marketing and unique understanding of the changes taking place in health care delivery today will ensure the success of our current and future products. We welcome and fully support this acquisition." Transaction Terms Under the terms of the agreement, Endo will commence a tender offer to purchase all outstanding shares of Indevus in exchange for an up-front payment of $4.50 in cash for each share of outstanding Indevus common stock ("Upfront Consideration"). In addition, Indevus shareholders will receive the non-transferrable contractual right to two contingent cash payments ("Contingent Cash Payments"), one for up to $2.00 per share and the other for $1.00 per share that could deliver up to an additional $267 million, or $3.00 per share in cash, if the Company meets certain targets. The first Contingent Cash Payment relates to NEBIDO and is payable as follows: (i) $2.00 per share if NEBIDO is approved, within three (3) years of the closing of the tender offer, by the FDA for marketing and sale without certain restrictive labeling, or (ii) two potential payments in the event that NEBIDO is approved by the FDA with certain restrictive labeling, comprised of: (a) $1.00 per share upon such approval, if approval is obtained within three (3) years of the closing of the tender offer and (b) an additional $1.00 per share following the achievement of a certain sales threshold milestone during the first five (5) years from the date of the first commercial sale of NEBIDO. The second Contingent Cash Payment relates to the octreotide implant and consists of $1.00 per share to be paid in the event that, within four (4) years of the closing of the tender offer, octreotide is approved by the FDA for marketing and sale for the treatment of acromegaly or carcinoid syndrome. The tender offer is expected to commence within 5 days of the signing of the Merger Agreement and will remain open for 45 calendar days, subject to extension under certain circumstances. The tender offer closing is conditioned on the tender of a majority of the outstanding shares of Indevus' common stock, antitrust clearance and other customary closing conditions. The executive officers and directors of Indevus and certain of their affiliates, have agreed to tender approximately 4.7% of Indevus' outstanding shares in the tender offer. UBS Securities LLC advised Indevus and provided a fairness opinion to Indevus' board of directors. Burns & Levinson LLP acted as legal counsel to Indevus.
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Eight White Hot Stocks You Should Know About
This was sent premarket to all TIMalert subscribers:Nothing truly great to start the week off, I’m still in the Florida Keys and I’m gonna go skydiving today…don’t worry, I’ve already been twice, it’s a piece of cake…IDEV got positive drug news and a hunk of money form a major pharmaceutical, I’m not gonna be so quick to short such a power packed deal, of course it could reverse, but I prefer shorting hype and manipulation to real deals like this. That said, if it goes up and squeezes some shorts enough, it’s a potential play.LSCG is a two-day spiker, chart is decent for a reversal but there is a shareholder meeting this Thursday so it’s not ideal (news could be announced).CYPB has the right longterm downtrending chart, spike off the bottom, but a history of taking weeks to reverse after [More...] |
