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Bristol-Myers Agrees to Buy Genetic Systems : Syntex Bought Out of Deal With Biotech Firm
February 04, 1986|DONNA K. H. WALTERS | Times Staff Writer
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Bristol-Myers has resolved a major sticking point in its proposed acquisition of a Seattle biotechnology firm, the companies said Monday.
The agreement among Bristol-Myers, Genetic Systems and Syntex, a Palo Alto-based drug maker, adds at least $15 million to the price that Bristol-Myers is paying to add Genetic Systems to its stable of drug and health-care endeavors. Stockholders of Genetic Systems are scheduled to vote Feb. 13 on the merger with Bristol-Myers. In that deal, each Genetic Systems share would be exchanged for Bristol-Myers stock valued at about $10.50, for a total of $294 million.
Bristol-Myers' merger proposal came only a few months after Genetic Systems and Syntex had entered a definitive agreement that called for Syntex to pay $40 million for 18% of Genetic Systems. The pact announced Monday by the three companies dissolves that earlier agreement.
One-Third Interest
Bristol-Myers has agreed to pay $15 million in cash to Syntex for that company's one-third interest in Oncogen, a research and development partnership formed by Syntex and Genetic Systems in 1983. Less than a year ago, Bristol-Myers paid $12.75 million to become a one-third partner in Oncogen.
