Javelin (JAV-$2.16) Gets Higher $141 Million Takeover Offer From Hospira
DOW JONES NEWSWIRES
Javelin Pharmaceuticals Inc. (JAV) announced plans to junk its $81 million takeover deal with rival drug developer Myriad Pharmaceuticals Inc. (MYRX) after getting a $141 million offer from Hospira Inc. (HSP), which Javelin's board has deemed as superior.
Javelin shares soared 63.4% at $2.19 in recent trading, while Hospira was down three cents at $56.22 and Myriad was inactive after closing on Friday at $4.53.
Hospira is offering $2.20 for each Javelin share as well as financing help and the $4.4 million termination fee due Myriad if its deal isn't completed. Myriad had made a minimum offer of 0.282 share for each share of Javelin, which valued Javelin's stock at $1.27 based on Friday close.
Javelin said it notified Myriad on Friday that it plans to terminate its agreement, and is required to negotiate with them for five business days, giving them a chance to meet the Hospira offer.
Myriad President and Chief Executive Adrian Hobden said as the company weighs its response this week, "our foremost priority will be to use our substantial financial resources prudently, including to develop our promising portfolio of drug candidates." He also called Myriad's deal with Javelin "fair" to both companies' holders.
Javelin's post-operative pain treatment Dyloject is pending U.S. Food and Drug Administration approval. Studies are ongoing and Javelin submitted a new drug application in December to the FDA.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;
