|
Ariad stock was up 74.7 percent at $23.98 in premarket trading.
Takeda has agreed to pay $24 in cash for each Ariad share, a
premium of about 75 percent to its Friday close.
Ariad's leukemia drug, Iclusig, which is expected to generate
sales of $170 million-$180 million in 2016, came under fire in
October for "staggering" price increases.
A U.S. Food and Drug Administration decision on its lung cancer
treatment brigatinib, which is being touted as a potential
blockbuster, is expected by April 29.
Cancer treatment is a target for many large drugmakers, with
high prices being paid for promising assets, such as Medivation,
which was bought by Pfizer Inc for $14 billion.
Takeda's negotiations to acquire Valeant Pharmaceuticals
International Inc's Salix stomach-drug business have stalled
over price disagreements, Reuters reported in November, citing
people familiar with the matter. http://reut.rs/2jkIbd9
The Ariad deal, which Takeda plans to fund by taking on $4
billion in new debt as well as existing cash, is expected to
close by the end of February.
Ariad had long-term debt of about $522 million as of Sept. 30,
according to a regulatory filing.
The equity value of the deal, which is expected to add to Takeda
earnings in 2018, is $4.66 billion, according to Reuters
calculations.
(Reporting by Natalie Grover and Ankur Banerjee in Bengaluru;
Editing by Shounak Dasgupta)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
