Officials at Javelin Pharmaceuticals, a Cambridge, Mass.-based company specializing in the development of prescription pain medication, said the company will reverse course on a planned acquisition by Myriad Pharmaceuticals in favor of an all-cash buyout by drugmaker Hospira.
Medication developer favors deal with Hospira
Javelin agreed in December to be acquired by Myriad in a stock and cash deal that proposes giving Javelin shareholders 41% interest in Myriad and providing Javelin $6 million in interim financing. Javelin shareholders were scheduled to meet on April 22 to vote on the board-approved offer, but company officials announced today that Hospira has made a preferable all-cash offer, which it plans to accept unless Myriad favorably adjusts the terms of its offer.
The Hospira offer would pay Javelin stockholders $2.20 per share to acquire all outstanding shares of the company. The deal also would provide Javelin up to $4.5 million in the form of a loan to fund operating activities prior to the acquisition's closing. Hospira would provide $8.3 million for Javelin to repay the principal and interest accrued under Myriad acquisition deal and another $4.4 million to cover the deal's termination costs, according to a news release.
Myriad has five days to make a counteroffer under the terms of the current deal agreement.
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