Viropharma to acquire Lev Pharma for $442M

The USA's ViroPharma will acquire fellow US firm Lev, a biopharmaceutical company focused on developing and commercializing therapeutic products for the treatment of inflammatory diseases, for $442.9 million of upfront consideration.

The payment amounts to $2.75 per Lev share, comprised of $2.25 a share in cash and $0.50 in ViroPharma common stock (subject to a collar). Contingent consideration of up to $1.00 per share may be paid on the achievement of certain regulatory and commercial milestones. The transaction, with a potential net aggregate value of up to $617.5 million, has been unanimously approved by the boards of directors of both companies. The companies expect the deal to be completed by the end of 2008. In addition, concurrently with the execution of the merger agreement, ViroPharma has purchased $20.0 million of Lev common stock.

Judson Cooper, Lev's chairman, said that "leveraging the combined resources of both companies not only strengthens our C1 inhibitor development platform, but also underscores our commitment to serving patients with critical unmet medical needs."