Mitsubishi Tanabe to acquire 60% of Canada's Medicago in $172 million deal

12 July 2013

Japanese drug major Mitsubishi Tanabe Pharma (TYO: 4508) has reached agreement to acquire 60% of Canada’s Medicago (TSX: MDG) at a price of C$1.16 million a share, or C$179 million ($172 million) in total. Philip Morris International (PMI) will retain a 40% stake in the firm.

Medicago, a biopharmaceutical company focused on developing highly effective and competitive vaccines based on proprietary manufacturing technologies and Virus-Like Particles (VLPs), already has a relationship with the Japanese firm to develop at least three new vaccines (The Pharma Letter March 8, 2012)

The purchase price represents a premium of around 22.1% to the closing price of C$0.95 per share on the TSX on July 11, 2013 and a premium of approximately 46.8% and 61.1% over the 30-day and 90-day volume weighted average prices of C$0.79 and C$0.72 per share on the TSX, respectively, up to and including July 11, 2013.

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