Company | Acquired By | Date | Date | Value | Terms/Details |
Acquired** | Or Merged With | Announced | Com- | (M) | |
(Country) | (Country) | pleted | |||
I. COMPLETED MERGERS AND ACQUISITIONS | |||||
Allergan | Ligand Pharma- | 9/97 | 11/97 | $71.4 | Ligand and Allergan formed |
Ligand Retinoid | ceuticals Inc. | Allergan Ligand Retinoid Thera- | |||
Therapeutics Inc. | and Allergan Inc. | peutics (ALRT) as a joint venture in | |||
(NYSE:AGN) | 1994; both partners exercised their | ||||
options to purchase the callable | |||||
common stock and assets of the | |||||
joint venture under the terms of | |||||
the original agreement; Ligand's | |||||
option exercisable at $21.97/share | |||||
(total $71.4M), which it paid in | |||||
cash and Ligand common stock | |||||
($7.69 cash and 0.97 Ligand share | |||||
per ALRT share, or $25M in cash | |||||
and $46.4M in shares [3.17M | |||||
shares at $14.66 each]); Allergan | |||||
also exercised its asset purchase | |||||
option by paying Ligand $8.9M in | |||||
cash to acquire 50% interest in | |||||
assets of the joint venture; Ligand | |||||
and Allergan divided up the exist- | |||||
ing compounds on a product-by- | |||||
product basis (Ligand got Panretin, | |||||
among others); each party pays | |||||
royalties on sales to the other | |||||
Chiral intermediates | Cambrex Corp. | 11/97 | 1/98 | $15 | Cambrex acquired Celgene's chiral |
business of | (AMEX:CBM) | intermediates business for $15M, | |||
Celgene Corp. | $7.5M paid on closing plus future | ||||
royalties of up to $7.5M, with cer- | |||||
tain minimum royalties in the 3rd | |||||
through 6th years; the acquired | |||||
business excludes rights to Cel- | |||||
gene's proprietary chiral pharma- | |||||
ceuticals as well as its Celgro | |||||
agrochemical business | |||||
Quality controls | Bio-Rad | 11/97 | 12/97 | ND | Bio-Rad bought Chiron Diagnos- |
business of Chiron | Laboratories Inc. | tics' worldwide quality controls | |||
Diagnostics Corp. | (AMEX:BIO.A) | business (exclusive of blood gas | |||
(unit of Chiron Corp.) | controls) for cash | ||||
Chiron Vision Corp. | Bausch & Lomb | 10/97 | 12/97 | $300 | Bausch & Lomb acquired Chiron |
(unit of Chiron Corp.) | Inc. (NYSE:BOL) | Vision for $300M cash; in a relat- | |||
ed move, and dependent on this | |||||
deal closing, Bausch & Lomb also | |||||
acquired Storz Instrument Co. | |||||
from American Home Products | |||||
Corp. for $380M in cash (also | |||||
completed 12/97) | |||||
Cohesion Corp.* | Collagen Corp. | — | 12/97 | $10 | Collagen bought all outstanding |
shares of Cohesion that it didn't | |||||
already own for $10M in cash; | |||||
Collagen and Rodney Perkins | |||||
founded Cohesion in 1993 and | |||||
Collagen increased its stake from | |||||
40% to 80% in 5/96; Cohesion | |||||
will be merged into Collagen | |||||
Technologies Group, which will | |||||
be spun off in 1998 | |||||
CorBec | Panax Pharma- | 5/97 | 11/97 | $2.6 | This transaction was subject to |
Pharmaceuticals | ceutical Co. Ltd. | several contingencies, including | |||
Inc.* | the completion of Panax's acquisi- | ||||
tion of Sangen Pharmaceutical and | |||||
new debt or equity financing; in | |||||
11/97, Panax raised $17M from a | |||||
private placement of 17M shares | |||||
of unregistered stock (at $1 each) | |||||
to institutional investors; simulta- | |||||
neously with the financing, Panax | |||||
completed its acquisitions of Cor- | |||||
Bec and Sangen; the newly merged | |||||
company adopted the name InKine | |||||
Pharmaceutical Co. Inc. and the | |||||
stock symbol INKP | |||||
Discovery | Ansan Pharma- | 7/97 | 11/97 | ND | Discovery was merged with and |
Laboratories Inc.* | ceuticals Inc. | into Ansan; Discovery has bought | |||
(majority-owned | $1.3M in shares of Ansan prefer- | ||||
subsidiary of | red convertible stock; Discovery | ||||
Titan Pharma- | shareholders will own 92% of new | ||||
ceuticals Inc.) | company; following closing of | ||||
merger, combined company effec- | |||||
ted a 1 for 3 reverse split of com- | |||||
mon stock and warrants and began | |||||
trading as Discovery Laboratories | |||||
under the symbol DCSO; Ansan | |||||
also entered into merger-contin- | |||||
gent sublicensing agreement on | |||||
certain butyrate compounds with | |||||
Titan; Titan gave up its 43% equity | |||||
stake in Ansan and will pay Ansan | |||||
a 2% royalty on the sublicense | |||||
Generic Distributors | DynaGen Inc. | 9/97 | 3/98 | $2.4 | DynaGen acquired all the assets |
Limited Partnership* | and liabilities of Generic Distribu- | ||||
tors for $2.35M ($1.2M in cash | |||||
and $1.15M in convertible pre- | |||||
ferred stock); DynaGen got a | |||||
$1.2M, 5-year loan from Fleet | |||||
Bank to finance the acquisition | |||||
Hayden Image | Parexel Inter- | — | 11/97 | ND | Parexel bought Hayden for an |
Processing Group | national Corp. | undisclosed number of shares of | |||
(the operating division | Parexel common stock | ||||
of Perceptive Systems Inc.) | |||||
IBRD-Rostrum Global | Phoenix Inter- | 12/97 | 2/98 | $28.5 | Phoenix acquired IBRD-Rostrum |
(U.S. & U.K.) | national Life | from Kuraya Corp. (Japan) for | |||
Sciences Inc. | US$28.47M, which included an | ||||
(Canada) | US$11.35M paydown of IBRD- | ||||
Rostrum's debt; the Royal Bank | |||||
of Canada and Banque Nationale | |||||
de Paris together loaned Phoenix | |||||
the cash (C$40M) | |||||
Innovative Medical | Oxis International | 7/97 | 1/98 | $2-$4.3 | Oxis acquired 100% of Innova- |
Systems Corp.* | Inc. | tive's issued and outstanding | |||
stock; Innovative shareholders will | |||||
get $2M-$4.25M in shares of Oxis | |||||
common stock over next 5 years, | |||||
based on performance | |||||
Kemper-Masterson | Parexel Inter- | 10/97 | 12/97 | $21.9 | Parexel issued $21.9M of its |
Inc. | national Corp. | common stock (0.58M shares at | |||
$37.50 each) in exchange for all | |||||
of Kemper-Masterson's outstand- | |||||
ing stock | |||||
Logos GmbH | Parexel Inter- | — | 3/98 | $29.7 | Parexel issued 0.775M shares of |
(Germany) and Mirai | national Corp. | common stock to acquire all out- | |||
BV (the Netherlands) | standing shares of both companies | ||||
Antisense drug | Inex Pharma- | 2/98 | 3/98 | $7 | Inex paid US$3M in cash and |
portfolio of Lynx | ceuticals Corp. | 1.2M of its common shares to | |||
Therapeutics Inc. | (TSE:IEX; Canada) | acquire Lynx's portfolio of anti- | |||
sense therapeutics (including LR- | |||||
3280, in Phase II trials for cardio- | |||||
vascular restenosis), patents and | |||||
manufacturing facilities; Inex de- | |||||
livered 0.4M shares on closing | |||||
(US$1.33M), while the remaining | |||||
0.8M shares (US$2.66M) are sub- | |||||
ject to certain escrow conditions; | |||||
Lynx has right to collect next 2 | |||||
milestones under big pharma part- | |||||
nerships on LR-3280, plus 50% of | |||||
future milestones and gross profits | |||||
(prices converted at a rate of | |||||
C$1.41/US$1) | |||||
Molecular | The Perkin-Elmer | — | 11/97 | ND | Perkin-Elmer paid cash for all |
Informatics Inc.* | Corp. (NYSE:PKN) | outstanding shares of Molecular | |||
Informatics; other terms ND | |||||
More Biomedical | Quintiles Trans- | 2/98 | 3/98 | ND | Quintiles acquired More Biomed- |
Contract Research | national Corp. | ical in exchange for an undisclosed | |||
Organization Ltd.* | number of shares of Quintiles | ||||
(Taiwan) | common stock | ||||
OncoLogic Biophar- | Procyon BioPharma | — | 10/97 | ND | ND |
maceuticals Inc.* | Inc.* (Canada) | ||||
PerSeptive | The Perkin-Elmer | 8/97 | 1/98 | $360 | Perkin-Elmer acquired PerSep- |
Biosystems Inc. | Corp. (NYSE:PKN) | tive for $13/share paid in newly | |||
issued Perkin-Elmer stock; Per- | |||||
Septive shares were converted | |||||
into Perkin-Elmer shares at a ratio | |||||
of 0.1926 for each PerSeptive | |||||
share (or 5M Perkin-Elmer shares | |||||
for all outstanding PerSeptive | |||||
shares and warrants); due to anti- | |||||
trust concerns, the Department of | |||||
Justice required that PerSeptive | |||||
Biosystems sell its DNA synthesis | |||||
patent rights (including the Koster | |||||
patent and certain rights under the | |||||
Caruthers patents) to NeXstar | |||||
Pharmaceuticals Inc., which for | |||||
an undisclosed amount took place | |||||
in 1/98 | |||||
Pharma Networks | Quintiles Trans- | 1/98 | 2/98 | ND | Quintiles acquired Pharma Net- |
NV* (Belgium) | national Corp. | works for an undisclosed number | |||
of shares of Quintiles common stock | |||||
PPS Europe Ltd. (U.K.) | Parexel Inter- | — | 3/98 | $112 | Parexel acquired both companies |
and Genesis Pharma | national Corp. | for 2.9M shares of its common | |||
Strategies Ltd. | stock | ||||
Receptor Research | Tripos Inc. | — | 11/97 | ND | ND |
Ltd.* (U.K.) | |||||
Rockwood | Biomune Systems | 7/97 | 11/97 | $6 | Biomune bought Rockwood from |
Investments Inc.* | Inc. | Ira Ritter (Biomune's president) | |||
for $5.96M plus purchase warrants | |||||
for Biomune common stock | |||||
Sangen | Panax Pharma- | 1/97 | 11/97 | $7.2 | This acquisition is intended to |
Pharmaceutical Co.* | ceutical Co. Ltd. | create a new company; the merger | |||
is contingent upon completion of | |||||
new debt or equity financing for the | |||||
combined entity; at closing, San- | |||||
gen's principals will get 2.35M | |||||
shares of Panax stock as well as | |||||
stock purchase warrants (see entry | |||||
for CorBec Pharmaceutical Inc. | |||||
above, which Panax acquired | |||||
simultaneously) | |||||
Sano Corp. | Elan Corp. plc | 12/97 | 3/98 | $392.8 | Elan acquired Sano in a stock |
(NASDAQ:SANO) | (Ireland) | transaction, 0.6 Elan American | |||
Depositary Shares for each share | |||||
Sano (10.56M outstanding), or | |||||
$392.8M; Sano will operate as a | |||||
business unit of Elan Pharmaceuti- | |||||
cal Technologies | |||||
Sequana | Arris Pharma- | 11/97 | 1/98 | $118.5 | Arris issued 1.35 shares for each |
Therapeutics Inc. | ceutical Corp. | share of Sequana outstanding, or | |||
about 13.8M Arris shares for | |||||
10.25M Sequana shares (Arris | |||||
shares closed at $8.563 on 1/7/98, | |||||
the date shareholders of both com- | |||||
panies approved the merger, giving | |||||
it a value of $118.5M); the new | |||||
company is called AxyS Pharma- | |||||
ceuticals Inc. and trades under the | |||||
symbol AXPH | |||||
Synteni Inc.* | Incyte Pharma- | 12/97 | 1/98 | $95.7 | Incyte issued 2.2M shares of its |
ceuticals Inc. | common stock to acquire all of | ||||
Synteni's outstanding shares | |||||
T2A SA* | Quintiles Trans- | — | 3/98 | ND | Quintiles acquired T2A for an un- |
(France) | national Corp. | disclosed number of shares of | |||
Quintiles common stock | |||||
Technology | Quintiles Trans- | — | 2/98 | ND | Quintiles acquired Technology |
Assessment Group* | national Corp. | Assessment Group for an undis- | |||
closed number of shares of Quin- | |||||
tiles common stock | |||||
II. PENDING MERGERS AND ACQUISITIONS | |||||
Acute Therapeutics | Discovery | 2/98 | — | ND | Letter of intent dated 2/98; defini- |
Inc.* (majority-owned | Laboratories Inc. | tive agreement dated 3/98; Discov- | |||
subsidiary of Discovery | ery Labs will acquire all outstand- | ||||
Laboratories Inc.) | ing shares of Acute Therapeutics | ||||
by issuing 3.91 shares for each | |||||
share Acute Therapeutics; the new | |||||
company will move to Acute Ther- | |||||
apeutics' headquarters and will be | |||||
run by Acute Therapeutics' manage- | |||||
ment; subject to approval by | |||||
shareholders of both companies | |||||
Biomira Diagnostics | Intracel Corp.* | 11/97 | — | ND | Intracel intends to acquire a sub- |
Inc. (wholly owned | stantial portion of Biomira Diag- | ||||
subsidiary of Biomira | nostics' assets | ||||
Inc.; Canada) | |||||
BioStar Inc.* | Cortech Inc. | 12/97 | 2Q:98E | $18.7 | Cortech will issue 28.5M new |
shares in exchange for all equity | |||||
interests in BioStar; Cortech | |||||
shareholders will own 40% of new | |||||
company and BioStar will own | |||||
60% (this is a reverse merger); | |||||
Cortech filed a registration state- | |||||
ment for the shares 2/18/98; trans- | |||||
action subject to approval of | |||||
shareholders of both companies | |||||
Cascade Oncogenics | MicroSure Inc. | 12/97 | — | $6.8 | MicroSure will issue 1.25 shares |
Inc.* | (OTC Bulletin | of common stock for each share of | |||
Board:MISU) | Cascade's common and preferred | ||||
stock; at full dilution, transaction | |||||
valued at $6.8M; subject to approv- | |||||
al by Cascade shareholders | |||||
ImmunoTherapy | AntiVirals Inc. | 11/97 | ND | $13.9 | According to the letter of intent |
Corp.* | (11/97), AntiVirals was to buy Immu- | ||||
noTherapy for $24M in stock and | |||||
warrants; however, the definitive | |||||
agreement (2/98) states that Anti- | |||||
Virals will acquire ImmunoTherapy | |||||
for 2.1M shares (at $6.625 each on | |||||
2/3/98, for total of $13.9M) and | |||||
2.1M warrants; shareholders from | |||||
both companies still need to approve | |||||
merger, but AntiVirals already has | |||||
changed its company name to AVI | |||||
Bio-Pharma to reflect the merger | |||||
Inflammatics Inc.* | Viragen Inc. | 1/98 | — | ND | Companies will form a strategic |
alliance; Viragen could acquire | |||||
up to 80% of Inflammatics upon | |||||
completion of current Phase I/II | |||||
trials and future Phase III trials of | |||||
LeukoVAX (human white blood | |||||
cell-derived drug for treating | |||||
rheumatoid arthritis) | |||||
Intek Labs Inc.* | Pharmaceutical | 11/97 | — | $6.5 | Pharmaceutical Product Develop- |
Product Develop- | ment will issue 0.4M shares of | ||||
ment Inc. | stock to Intek shareholders | ||||
Molecular | Pharmacopeia Inc. | 2/98 | 2Q:98E | $132.8 | Pharmacopeia will acquire all out- |
Simulations Inc.* | standing stock of Molecular Simu- | ||||
lations for 7M newly issued shares | |||||
Pharmacopeia common stock; it | |||||
also will convert Molecular Simu- | |||||
lation's outstanding options into | |||||
Pharmacopeia options, which may | |||||
result in issuance of 1.5M more | |||||
new Pharmacopeia shares; trans- | |||||
action subject to approval by | |||||
shareholders of both companies | |||||
Northwest | Neurocrine | 3/98 | — | $4.2 | Neurocrine will pay a total of $4.2M |
Neurologic Inc.* | Biosciences Inc. | by issuing new shares of its common | |||
stock to acquire Northwest Neuro- | |||||
logic; transaction subject to approval | |||||
of Northwest Neurologic shareholders | |||||
Proceutics Inc. | Oread Inc.* | 2/98 | — | ND | Proceutics will transfer its person- |
(wholly owned sub- | nel, equipment and client contracts | ||||
sidiary of CytRx Corp.) | to Oread; Proceutics will retain its | ||||
real estate assets (but is negotiating | |||||
their sale independently but con- | |||||
currently) | |||||
Somatogen Inc. | Baxter Inter- | 2/98 | 2Q:98E | $189 | Baxter will pay Somatogen share- |
national Inc. | holders $9/share in Baxter stock | ||||
(NYSE:BAX) | for all 21M shares outstanding; | ||||
Baxter also will make deferred | |||||
cash payments of up to $2/share | |||||
($42M total) based on 5% of sales | |||||
of certain future-generation prod- | |||||
ucts through 12/31/07; approval of | |||||
Somatogen shareholders required | |||||
Transcell | Intercardia Inc. | 11/97 | 1Q:98E | $18-$19 | The companies signed a letter of |
Technologies Inc.* | (subsidiary of | intent in 11/97 and a definitive mer- | |||
(majority-owned sub- | Interneuron Phar- | ger agreement in 3/98; according | |||
sidiary of Interneuron | maceuticals Inc.) | to the terms of the definitive agree- | |||
Pharmaceuticals Inc.) | ment, Intercardia will exchange | ||||
$11-$12M of its stock for the cap- | |||||
ital stock of Transcell; Intercardia | |||||
also will pay Interneuron $3M in | |||||
stock for related technology rights | |||||
held by Interneuron; Intercardia | |||||
also will issue $3M-$4M in stock | |||||
options to Transcell employees | |||||
and consultants; subject to | |||||
approval by shareholders of both | |||||
Transcell and Intercardia | |||||
Vascular Genomics | Corvas Inter- | 7/97 | 7/00E | $13-$20 | Corvas has 3-year option to acquire |
Inc.* | national Inc. | Vascular Genomics; it will make the | |||
purchase with new shares of Corvas | |||||
stock from $13M-$20M, depending | |||||
on when the option is exercised; | |||||
the option will automatically be | |||||
triggered if Corvas enters into a | |||||
partnering agreement having an equal | |||||
value; during option period, Corvas | |||||
has exclusive rights to patented | |||||
vascular targeting technology and | |||||
will fund R&D at $1M/year; if Corvas | |||||
elects not to exercise option, | |||||
Vascular Genomics may require | |||||
it to buy 20% of its stock for | |||||
$3.96M in Corvas stock | |||||
III. TERMINATED MERGERS AND ACQUISITIONS | |||||
REAADS Medical | NovaDx Inter- | 9/97 | Termi- | ND | NovaDx was to issue common |
Products Inc.* | national Inc. | nated | shares to REAADS shareholders | ||
(VSE:NVN) | 11/97 | in exchange for all its outstanding | |||
shares; however, NovaDx termi- | |||||
nated merger discussions in 11/97, | |||||
citing strategic considerations and | |||||
other opportunities that had been | |||||
presented to it | |||||
Scandipharm Inc. | Dura Pharma- | 10/97 | Termi | $93-$139 | Dura was to issue $93M-$139M of |
ceuticals Inc. | nated | its common stock in exchange for | |||
12/97 | all of Scandipharm's capital stock | ||||
and outstanding options; in 12/97, | |||||
Dura said it had terminated the | |||||
merger agreement, but did not state | |||||
a reason; in 1/98, Scandipharm | |||||
sued Dura for breach of contract; | |||||
the following day, Dura filed a | |||||
countersuit for fraud and other | |||||
charges; the suits are still pending | |||||
Scitech Genetics | Receptagen Ltd. | 9/97 | Termi- | $21.6 | Receptagen was to acquire 100% |
Ltd.* (Singapore) | (TSE:RCG) | nated | of Scitech for $21.6M in Recepta- | ||
3/98 | gen stock; the new company was | ||||
to have kept the Scitech Genetics | |||||
name and Receptagen's TSE list- | |||||
ing (but with a new symbol); in | |||||
11/97, Receptagen said it had | |||||
made US$0.2M in goodwill pay- | |||||
ments to Scitech; in 12/97, the | |||||
companies signed a formal share | |||||
exchange agreement and then | |||||
simplified the terms in 2/98; by | |||||
3/98, however, the agreement was | |||||
terminated because Scitech tried to | |||||
amend further certain terms, which | |||||
was unacceptable to Receptagen | |||||
NOTES: | |||||
# This chart is intended to include not only mergers and acquisitions of entire businesses, but also of divisions or subsidiaries of those businesses, where appropriate. It does not include acquisitions of single products or of manufacturing facilities and plants. In does not include mergers and acquisitions in the area of agricultural biotechnology (which are treated separately in BioWorld Financial Watch.) The information on the chart encompasses the period from 10/25/97 3/10/98. For those deals that are pending and for which the acquiring company is issuing stock, the value of the transaction has been calculated based on the closing price on the day of the first announcement. For those deals that have been completed and for which the acquiring company is issuing stock, the final value has been calculated based on the closing price on the date that the merger's completion was announced. | |||||
E = Estimated date, dependent on approval of regulatory authorities and shareholders of one or all companies involved in the transaction; ND = Not disclosed, reported and/or available; TSE = Toronto Stock Exchange; VSE = Vancouver Stock Exchange | |||||
* Private companies are indicated with an asterisk. | |||||
** Unless otherwise noted, the trading symbols for public biotechnology companies can be found by referring to the BioWorld Stock Report For Public Biotechnology Companies on pp. 12-13. |