This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Astellas In Hostile Bid for OSI: BioBuzz

MELVILLE, NY ( TheStreet) -- Japanese drug maker Astellas has launched a $3.5 billion hostile tender offer for U.S. biotech firm OSI Pharmaceuticals (OSIP), maker of the lung cancer drug Tarceva.

Astellas is seeking to acquire all outstanding shares of OSI Pharma for $52 a share, representing a 40% premium over OSI Pharma's Friday closing price of $37.02, Astellas announced Monday.

The hostile tender offer for OSI Pharma comes after numerous previous entreaties by Astellas to buy the U.S. drugmaker were spurned, Astellas said in a statement.

"This offer follows our attempts over the past 13 months to engage OSI in meaningful discussions. We firmly believe in the compelling strategic rationale behind the combination and the opportunity it provides to the OSI stockholders to realize full and fair value, in cash, immediately," said Masafumi Nogimori, president and CEO of Astellas, in a statement.

Sales of OSI Pharma's lung cancer drug Tarceva rose 17% to $1.2 billion in 2009. Tarceva is co-marketed by the Swiss drug giant Roche/Genentech.

Last year, Astellas launched an unsuccessful and hostile tender offer for U.S. drugmaker CV Therapeutics, which was ultimately acquired by Gilead Sciences (GILD - Get Report).

-- Reported by Adam Feuerstein in Boston.

Follow Adam Feuerstein on Twitter.
Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GILD $108.03 0.04%
AAPL $112.79 -0.12%
FB $90.89 1.30%
GOOG $630.80 -1.10%
TSLA $248.45 2.20%

Markets

Chart of I:DJI
DOW 16,602.85 -51.92 -0.31%
S&P 500 1,992.33 +4.67 0.23%
NASDAQ 4,833.5740 +20.8660 0.43%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs