Deerfield ups NitroMed unsolicited takeover offer

Massachusetts, USA-based NitroMed says that it has received a letter from Deerfield management increasing the firm's unsolicited proposal to  acquire the company from $0.50 per share in cash to $0.65 a share in  cash (Marketletter December 15, 2008). NitroMed also said that it is  prepared to enter into discussions with Deerfield, subject to the  obligations under NitroMed's agreements with JHP Pharmaceuticals and  Archemix Corp. There can be no assurance that any agreement will be  reached for any transaction, the firm stressed.

NitroMed of Lexington, Massachusetts is the maker of BiDil (isosorbide  dinitrate/hydralazine hydrochloride), an orally-administered medicine  available in the USA for the treatment of heart failure in  self-identified black patients.

Last year, NitroMed entered into a purchase and sale agreement with JHP  Pharmaceutical, a privately-held specialty drugmaker, under which it  agreed to sell the latter company substantially all of the assets  related to its BiDil and BiDil XR drug business for $24.5 million in  cash (Marketletter November 3). The sale of the BiDil and BiDil XR drug  business is subject to NitroMed stockholder approval and other customary  closing conditions.