Allergan Inc. (AGN) said Tuesday it will buy MAP Pharmaceuticals
Inc. (MAPP) in a $958 million deal that would help the Botox maker
expand sales of medical treatments.
The cash deal, for $25 a share or a 60% premium, comes after the
two companies had agreed to jointly sell a migraine drug called
Levadex that MAP had developed and that is awaiting approval from
the U.S. Food and Drug Administration.
Although best known for the Botox wrinkle-removing treatment,
Allergan also sells prescription drugs and devices for glaucoma and
other medical conditions.
The company, which had $5.4 billion in sales last year, has been
trying to expand its medical offerings. It has even been seeking
medical uses for Botox, most recently for overactive bladders but
also for migraines.
If approved, Levadex could complement Botox's use in migraines
and allow Allergan sales representatives to sell both products to
neurologists.
"One of the key drivers of Allergan's continued success is our
focus on medical specialties where we have extensive knowledge of
physician and patient needs, and can provide a broad portfolio of
products," Chief Executive David Pyott said in a statement.
MAP CEO Timothy Nelson said in the statement the deal reflects
the "tremendous progress to date" developing Levadex and the
"strong cultural and scientific fit between our companies."
The FDA has said it would decide on Levadex approval by April
15. MAP first sought the drug's approval in May 2011, but then
resubmitted the application in October to provide additional data
and respond to FDA questions.
Allergan, of Irvine, Calif., said it expects to close the
acquisition late in the first quarter or in the second quarter of
this year. Allergan said it plans to buy all MAP shares, which
amounts to a total value of $958 million.
An Allergan spokeswoman said the company wouldn't comment on
whether MAP, of Mountain View, Calif., has any cash on hand until
discussing the deal on Wednesday.
Write to Jonathan D. Rockoff at jonathan.rockoff@wsj.com
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