Biotech Values

[DewDiligence]

Cephalon to Acquire Arana Therapeutics for $207M in Cash

[This deal is essentially a fait accompli.]

http://www.reuters.com/article/marketsNews/idINN2736977320090227

›Fri Feb 27, 2009 8:45am EST

CHICAGO, Feb 27 (Reuters) - Cephalon (CEPH) launched a takeover bid valued at $207 million for Australian biotechnology company Arana Therapeutics (AAH.AX).

Cephalon said it intended to offer A$1.40 cash for each Arana ordinary share, representing premiums of 70 percent to the company's 90-day volume-weighted average price and 69 percent to the Feb. 25 closing price.

The offer, which has the support of Arana's independent directors, will be recommended to the company's shareholders in the absence of a better proposal, Cephalon said.

Arana has a pipeline of biologic compounds for inflammatory diseases and cancer at various stages of development.

Cephalon said it intended to fund the deal with part of its existing cash balance and that the deal did not change its 2009 adjusted income outlook.

To support its bid, Cephalon has acquired a 19.9 percent ownership position in Arana from the company's two largest shareholders, Start-up Australia Ventures Pty Ltd and Rockwell Securities Limited.‹