OSI accepts Astellas's $4-billion revised offer

Japanese pharmaceutical company Astellas Pharma today sweetened its takeover offer for US drug company OSI Pharmaceuticals to $4 billion in cash, a deal finally agreed by the board of OSI, thus ending the two-month hostile takeover battle.

Under the terms of the merger agreement, Astellas, Japan's second-largest pharmaceutical company after Takeda Pharmaceutical, and the world's sixth largest drugs maker, will increase its offer price to $57.50 per share, representing a premium of 55 per cent to the closing price for OSI's shares of $37.02 on 26 February 2010, the last trading day before the announcement by Astellas of its tender offer.

Tokyo-based Astellas said in a statement that the boards of directors of both companies have unanimously approved the acquisition, which values OSI at $ 4 billion.

Colin Goddard, CEO of OSI, said, ''We believe today's announcement recognises the significant value we have built for our stockholders while providing the merged companies the opportunity to forge a stronger collective path forward in a shared mission to provide innovative new medicines to patients around the world."

Masafumi Nogimori, president and CEO of Astellas, said, ''The merger with OSI provides Astellas with a top-tier oncology platform in the US and an expanded product portfolio and pipelines.''

''In addition to Tarceva, we are pleased to add its oncology infrastructure, discovery platform, expanded pipelines and talent base to our existing businesses. We look forward to working together with our OSI colleagues to grow the combined business and realize our shared goal of improving the health of the people around the world every day,'' he added.