is selling two of its businesses to drug developer Lonza in a deal worth $460 million.
Under an agreement between the companies, Lonza will acquire Cambrex's Bioproducts and Biopharma segments, while Cambrex will focus on its human-health businesses.
Proceeds, which are expected to be $450 million after taxes and other costs, will be used to pay off debt and to help fund a special dividend to Cambrex stockholders, which is likely to be between $13.50 and $14.50 a share.
The sale should close within 90 to 120 days, after which, Cambrex expects to secure new lines of credit, giving the company an additional $125 million to $150 million to use toward the special distribution.
"After a thorough and deliberate process, our board of directors determined that the sale of our Bio businesses to Lonza represents the most compelling means for realizing value for Cambrex stockholders," said James Mack, the company's chairman, president and CEO.
Shares rose 6% to $22.88 Tuesday.
Last week, Cambrex said it signed an agreement to sell two of its human-health division's manufacturing facilities in order to streamline the business and focus on its three largest plants.
reported trial data showing that Tysabri helped maintain remission in patients with Crohn's disease who were treated for longer than two years.
On the basis of studies of roughly 90 Tysabri patients, 93% of those in remission at 12 months remained in remission after six more Tysabri infusions. About 86% of patients were still in remission after 12 additional infusions, according to data presented to the Annual American College of Gastroenterology and at the 14th United European Gastroenterology Week.
Among 22 patients previously treated with
Johnson & Johnson's
Remicade, 91% were in remission after six and 12 additional Tysabri infusions. Of the study's participants who had previously failed therapy with Remicade, 82% were in remission at the same time points after receiving Tysabri, Biogen and Elan said Tuesday.
"What is truly exciting is that patients who enter remission on Tysabri may remain in remission in the long-term without loss of efficacy over time," said Dr. Remo Panaccione, director of the inflammatory bowel disease clinic at the University of Calgary in Canada.
Biogen Idec's shares fell 1.2% to $44.73, while Elan was up 0.8% to $15.56.
Tysabri was withdrawn from the market early last year after the drug was linked to cases of a rare and sometimes deadly brain disease when used in combination with another Biogen Idec drug, Avonex. Tysabri returned to the market with restrictions earlier this year after an extensive review by the Food and Drug Administration and the establishment of patient-monitoring procedures.
( MATK) won a lawsuit against the life-sciences company Lonza for infringing patents on some of its nutritional products.
A jury in the U.S. District Court in Wilmington, Del., found that Lonza willfully infringed the company's patents, which were deemed valid in court.
"The verdict further demonstrates both the company's resolve to vigorously defend our intellectual property portfolio and the strength of Martek's patent portfolio in the U.S. marketplace," said CEO Steve Dubin.
The company intends to ask the court for a permanent injunction. However, the decision could be appealed by Lonza to the U.S. Court of Appeals for the Federal Circuit. Martek was down 1.1% to $23.33.
Laboratory Corporation of America
reported better-than-expected third-quarter results and announced an additional share-repurchase program.
The company earned 81 cents a share in the latest quarter, up from 66 cents a share a year ago. Excluding restructuring costs and other charges, LabCorp would have earned 84 cents a share. Analysts were expecting a profit of 80 cents.
Quarterly sales reached $909.9 million, up 6.7% from a year ago and above analysts' estimates of $902.3 million.
Additionally, the company's board authorized a new buyback covering up to $500 million of stock. LabCorp has $100 million remaining through a previous repurchase plan.
For the full year, the company expects to see revenue growth of 6.5% to 7.2% and earnings per share of between $3.28 and $3.33, before factoring in certain items.
Next year, excluding the impact of shares repurchased after Sept. 30, the company is projecting revenue growth of 11% to 13% and earnings between $3.68 and $3.83 a share. The consensus estimate is $3.14. LabCorp rose 0.6% to $68.78.