Vectura buys Innovata in L129M share deal

Vectura has agreed to acquire fellow UK-based rival in the respiratory medicines development sector, Innovata, in an all-share deal which values the transaction at about L128.8 million ($245.1 million).

Under the terms of the proposed offer, which has been approved by Vectura and Innovata's boards of directors, the latter's shareholders will receive 0.2858 new Vectura shares for each of their own. On completion of the merger, which is expected by January 16, 2007, Vectura's shareholders will own 54% of the combined company and Innovata's 46%.

The combination will create an enlarged group with a portfolio of revenues from eight marketed products, a strong development pipeline and a range of formulation, device and delivery technologies for drugs inhaled as dry powders, comments Vectura. It will also benefit the firm financially, which had combined pro forma cash of L92.0 million as at September 30, it notes.