PARIS (Thomson Financial) - Ipsen said it has reached agreement with the
board of Tercica Inc to buy all shares it does not already own in its U.S.
partner for $9.0 usd per share or a total of about $404 million.
The offer is a 104 percent premium to Tercica's closing price yesterday and
a premium of 74 percent and 49 percent to the volume-weighted average closing
share price during the last three months and six months respectively, the French
pharmaceuticals group said.
Ipsen and its subsidiaries so far own about 25.3 percent of Tercica, a U.S.
biotech company focused on endocrinology.
Ipsen also said it has reached agreement to buy Vernalis Pharmaceuticals
Inc, the U.S. subsidiary of Vernalis PLC, and the U.S. rights to its Parkinson's
disease treatment Apokyn for a total of up to $12.5 million.
In addition, Ipsen will subscribe to the equivalent of $5.0 million of newly
issued shares of Vernalis PLC, and the companies will join forces on specific
Ipsen neurology R&D programs.
In a third deal, Ipsen said it will acquire all of Octagens assets related
to OBI-1 and get full control over clinical development of the compound, which
is being developed to treat haemophilia.
Ipsen will make an upfront payment of $10.5 million to Octagen and will make
future milestone payments of up to $26 million plus royalties on sales.
Following completion, Ipsen will redeem its stake in Octagen.
The company confirmed its 2008 business targets and said it expects sales
growth of between 12 and 14 percent next year at constant exchange rates,
assuming all the deals are completed.
It forecasts the operating margin will drop to around 15 percent of sales
next year, when it expects R&D expenses to be between 19 and 21 percent of net
sales.
As a result of the three agreements, Ipsen expects to create a North
American platform able to generate sales of more than $300 million in 2012,
growing double-digit worldwide, and potentially able to reach $1 billion by the
end of the next decade.
Ipsen said on February 27 that it is targeting underlying 2008 sales growth
of 6.5-7.5 pct and a 13.0-16.0 pct increase in other revenues, both at constant
exchange rates.
It is aiming for an operating margin of 22.0-23.0 percent, despite marketing
and pre-launch costs of new products.
Andrew Newby; Andrew.Newby@thomsonreuters.com
an/jfr
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