Biotech Values

[DewDiligence]

Large Crucell Shareholder Says JNJ Offer Too Low

http://online.wsj.com/article/BT-CO-20100917-705340.html

›By Ben Zwirs
SEPTEMBER 17, 2010, 8:34 A.M. ET

AMSTERDAM (Dow Jones)--The second-largest shareholder in biotech company Crucell NV (CRXL.AE) said Friday that U.S. pharma giant Johnson & Johnson's (JNJ) offer to buy the rest of the Dutch company is too low and has come too early.

Gertjan van der Baan, a director of private investment company Van Herk Groep, told Dow Jones Newswires that the proposed offer of EUR24.75 per share is "meagre". He declined to say whether Van Herk will tender its shares, saying that he will wait for the formal offer.

Van Herk Groep holds a 9.6% stake in Crucell, making it the second-largest shareholder in the Dutch company after Johnson & Johnson, which has a stake of about 17.9%.

Van der Baan said he thinks Crucell is in a transition phase, with the revenue potential of a biotech company but with a low risk profile similar to other pharma companies.

"Therefore, I think the offer is meagre and too early," he said.

Separately, Delta Lloyd Asset Management, a unit of Dutch insurer Delta LLoyd NV (DL.AE) which holds a stake of between 4% and 5% in Crucell, said the proposed offer seemed a move "in the right direction," and that a deal would make sense strategically.

"But it's to early now to assess [the bid] so we're going to take our time to study it," said Jack Jonk, head of equities at Delta Lloyd Asset Management.

Johnson & Johnson said Friday said it's in advanced talks to acquire the rest of Crucell NV (CRXL) for about EUR1.75 billion in cash, a move that would make the Dutch company the core of its vaccines business.

Many analysts said the offer represented a good premium and that the chances of a bidding war seem limited. However, analysts at S&P Equity Research said in a note that a further bid can't be ruled out if Crucell's board fails to convince institutional shareholders and Dutch investors to sell their holdings.‹