MGI Pharma leaps on hiring advisors

USA-based oncology and acute care specialist MGI Pharma says it has retained investment banker Lehman Brothers to assist in evaluating "possible strategic alternatives" for the company - a euphemism for a merger or sale of a business. The news saw MGI's shares leap 15% to $33.89 in mid-day trading on November 29.

MGI added that it would neither comment on rumors about the firm nor say any more until the evaluation process is complete. For the third quarter of this year, the company posted revenues of $112.5 million, up 16% on the like, year-earlier period, and net income of $10.9 versus $1.7 million. Its lead products are Aloxi (palonosetron), which produced sales of $66.3 million vs $34.6 million, and Dacogen (decitabine), generating $34.6 million vs $11.9 million. It also has US rights to a novel, potential blockbuster thrombocytopenia drug, AKR-501.