Japan''s Astellas to Buy US OSI for $4 Billion
May 17, 2010
The Associated Press reports Japanese drug maker, Astellas Pharma Inc., said it will buy U.S. cancer drug company OSI Pharmaceuticals Inc. for $4 billion in cash in a bid to expand its cancer drug business worldwide. Astellas said it will pay $57.50 per OSI share, up from $52 the Japanese company had offered earlier. The transaction will be completed within a month. The deal ends a contentious 14-month courtship that began in January 2009. The acquisition is part of Astellas'' drive to expand its cancer drug business worldwide. OSI''s drugs include Tarceva, for lung cancer, which generated $1.2 billion in global sales last year. Tarceva is marketed through a partnership with Roche''s Genentech unit. OSI reported about $428 million in revenue in 2009, and more than 80 percent of that total -- about $359 million -- came from the Tarceva partnership. The Japanese maker said it hopes to jointly develop cancer drugs with OSI. Astellas is developing treatments for cancer of the prostate, breast, skin, pancreas, and ovaries. Its main areas include urology and transplant drugs, and it''s trying to expand its capabilities in immune and infectious diseases, metabolic diseases, and neuroscience. Astellas made a written offer of $52 per share for OSI in February 2009, but OSI said that price was too low. After several refusals, Astellas took its offer directly to shareholders in a hostile bid. It also filed suit to prevent OSI''s board from blocking the deal. Both boards have approved the transaction.