Biotech Values

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CPTS--Bayer AG(BAYRY,BAYN.XE)has agreed to buy Conceptus Inc. (CPTS) for about $1.1 billion (852 million euros) as the health-care firm aims to broaden its women's contraceptive offerings.

"Bayer is committed to augmenting its organic growth with strategic bolt-on acquisitions," Bayer Chief Executive Marijn Dekkers said. "The acquisition of Conceptus represents an excellent fit for our HealthCare business--specifically in the United States, the world's most important health care market."

Bayer said that within the next 10 business days, it will launch a tender offer to acquire all of Conceptus's stock for a per-share price of $31 in cash, a 20% premium to its Friday closing price.

The deal is expected to close by the middle of the year.

Mountain View, Calif.-headquartered Conceptus has developed a surgery-free permanent birth control method called Essure, which Bayer said will complete its portfolio of long-acting intrauterine systems and short-acting oral contraceptives.

Essure was approved by the U.S. Food and Drug Administration in 2002. The procedure can be performed in a physician's office in less than 10 minutes without the risks associated with general anesthesia or tubal ligation, according to Bayer.

In January, Bayer's CropScience division agreed to acquire Prophyta GmbH, a leading supplier of microbial crop protection, for an undisclosed sum.

Shares of Conceptus closed Friday at $25.90, while those of Bayer closed at $103.50. Both companies' stocks were inactive in recent premarket trading.

Write to Saabira Chaudhuri at [e-mail]

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