Gilead Sciences revealed today its acquisition of cardiovascular drugmaker CV Therapeutics for $1.4bn in cash. For $20/share, this steps over the $16/share hostile bid of Japan’s Astellas Pharma, Gilead’s Japanese partner. The deal between Gilead and the maker of Ranexa and Lexiscan marks the 3rd merger in a span ofa few days and the 4th if the Pfizer-Wyeth deal, which transpired during the last week of January, is to counted. CV Therapeutics was approached by Astellas in November for a potential merger before it pushed the Japanese partner to bring its bid public. Two weeks ago, a $16/share bid was made but to no good.
John C. Martin, Gilead’s chairman and CEO remarked: “The acquisition of CV Therapeutics represents a unique opportunity to complement and strengthen our growing cardiovascular portfolio.”
Under the terms of the deal, Gilead will pay $20 in cash for each CV share through a tender offer and after garnering at least a majority of CV shares through the tender, the firm would buy the remaining shares for the same price.
Gilead was advised by Merrill Lynch and law firm Cooley Godward Kronish while the acquired firm was advised by Barclays Capital and Goldman Sachs with the aid of law firm Latham & Watkins.