UPDATE: Genzyme to pay $345M for clofarabine to co-development partner Bioenvision
Massachusetts, USA-based biotechnology major Genzyme Corp says that it has reached agreement to acquire Bioenvision, headquartered in New York, in an all-cash transaction of $5.60 a share, or a total of around $345.0 million. This represents a premium of about 50% on Bioenvision's share price over the last 20 trading days and the news sent the latter's stock up 7.1% to $5.62 in morning trading on May 29, while Genzyme's edged up 2.1% to $62.55. The deal has the support of both boards of directors and is expected to close in July.
Although the acquisition is expected to be around $0.06 a share dilutive to Genzyme's 2007 earnings, it means the company gets worldwide rights to clofarabine, which the two companies co-developed in Europe, where Bioenvision currently markets the product as Evoltra for the treatment of acute lymphoblastic leukemia (ALL) in relapsed and refractory pediatric patients. The deal is forecast to be accretive in 2009.
The giant and the minnow
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