Talon Therapeutics Inc (fka TLON)

[goodwill4all]

WP potential losses from Allos deal with Spectrum

Published April 9, 2012 at 5:06 PM

Private equity investor Warburg Pincus, an active investor in biotech, is taking a multimillion-dollar loss on its seven-year-old investment in Allos Therapeutics Inc., which agreed to be acquired by Spectrum Pharmaceuticals Inc. for $206 million.

Warburg, with 24.4% of Allos shares, stands to bring in $47.55 million from the sale to Henderson, Nev.-based Spectrum, which is paying $1.82 a share. Under the terms of the transaction, announced April 6, shareholders could gain $12.5 million more, of which Warburg could take slightly more than $3 million, if Allos achieves a $.11 a share milestone payment by securing European goals for its lymphoma medication Folotyn.

If Allos, a Westminster, Colo.-based biotech company, is able to sell Folotyn in three European markets by 2013, Warburg's loss will be $21.1 million. If Folotyn fails, Warburg's loss would be more than $24 million, or about 33% of its $71.7 million total outlay. It paid an average of $2.68 a share.

http://www.thedeal.com/content/healthcare/warburg-pincus-to-post-a-loss-from-allos-sale-to-spectrum.php#ixzz22yFPtK5y