Updated from 12:31 p.m. EST with new stock prices
News on biotech and pharma pair-ups moved a few stocks on an overall here-and-there Tuesday for the health sector.
announced it will acquire surgical products maker
( TTG) in an all-stock deal worth around $263 million, or $12.86 a share. Tutogen shareholders will receive 1.22 shares of newly issued Regeneration common stock for each share of Tutogen common stock they own.
Regeneration shareholders will own around 55% of the combined company and Tutogen shareholders will own about 45% upon completion of the deal, which is expected to close in the first quarter of 2008 pending shareholder approval.
Regeneration expects $5 million to $6 million of identified annual cost savings between the companies, when the deal is fully realized, and expects it will add to its 2008 earnings, excluding one-time transaction costs and adjustments.
Regeneration shares fell 54 cents, or 5.1%, to $10.00 in recent trading, while Tutogen shares climbed $1.77, or 17.4%, to $11.92.
In other tie-up news, Sanofi Pastuer, the vaccines division of
, said Tuesday that it would partner with
to develop and market a vaccine for West Nile Virus, which currently has no prevention or specific treatment.
Acambis will perform development activities for the candidate, which is in a phase II trial in adults more than 41 years old, up to the filing of a license application in the U.S. The company will receive an upfront payment of $10 million in addition to eligibility for $70 million more in postmarketing milestone payments. Sanofi shares rose $1.34, or 3%, to $45.99.
In other collaboration news,
said it will pay
$135 million to satisfy outstanding contract issues on its inhaled insulin drug Exubera and next-generation insulin (NGI) product, which is in early-stage development. The company, which discontinued its Exubera efforts with its quarterly earnings in October, said it will transfer its remaining rights and all economic benefits for Exubera and NGI, if a new partner is selected.
Pfizer and Nektar Therapeutics will continue to jointly develop an inhaled formulation of pegylated human growth hormone to treat growth problems.
Nektar shares added 32 cents, or 5.5%, to $6.12, and Pfizer shares were up 53 cents, or 2.3%, to $23.55. Nektar is a component of the Nasdaq biotechnology index, which was up 10.93, or 1.3%, to 852.21.
Elsewhere, biotechnology company
( CRXL) said Tuesday that the Food and Drug Administration granted its rabies monoclonal antibody cocktail fast-track designation, which is designed to facilitate the development and expedite the review of new drugs meant to treat serious or life-threatening diseases and that demonstrate the potential to address unmet medical needs. It allows for frequent communications with the FDA and the possibility of submitting portions of the marketing application before the complete application is submitted. Shares were trading up 60 cents, or 3.2%, at $19.14.
On the falling end,
said it will offer $250 million of unsecured senior convertible notes due 2038. Underwriters will have the option to buy up to $37.5 million more to cover overallotments. The company will use the proceeds for working capital and general corporate purposes, which may include funding its operations, capital expenditures and possible acquisitions. The company will also use the proceeds for repurchases or redemption of its 0.75% senior convertible notes due 2033. J.P. Morgan is underwriting the offering. The stock was down $2.29, or 9.6%, to $21.67.