Connetics in $640M merger with Stiefel

California, USA-headquartered Connetics Corp, a specialty drugmaker that develops and commercializes dermatology products, has signed a definitive merger agreement with Stiefel Laboratories, a privately-held company based in Coral Gables, Florida. On closing of the transaction, holders of Connetics' common stock will receive $17.50 per share in cash, representing a 62% premium to the firm's average closing price for the past four weeks. The aggregate value to be received by Connetics' stockholders is around $640.0 million.

Thomas Wiggans, chief executive of Connetics, said that the merger "will create the world's premier dermatology company with a strong global presence in both branded and generic markets, dozens of marketed products and the most robust development pipeline in the industry. After the combination, Stiefel Laboratories, will have more than 3,500 employees worldwide, with more than 30 subsidiaries and sales in more than 100 countries."

The parties anticipate closing the transaction in late-2006 or early-2007. The deal is subject to approval by a majority of Connetics' shareholders, antitrust clearance and other customary closing conditions.