New York, NY, United States (4E) – Health-care company Allergan Inc. announced its plans on Tuesday to buy biopharmaceutical company MAP Pharmaceuticals Inc. for $ 958mn, a deal that would expand the sales channel of the Botox maker.
Allergan agreed to acquire MAP Pharmaceuticals for $ 25 per share in cash or equity that amounts to $ 958mn in value. Both companies’ board of directors have unanimously approved the deal that is expected to be finalized between the first quarter and second quarter of this year.
Allergan, whose sales reached $ 5.4bn last year, has been trying to expand sales of its medical products. It has been exploring medical uses for Botox, recently used as treatment for overactive bladders and migraines.
In January 2011, the Irvine, Cal.-based Allergan signed a collaboration agreement with MAP to co-promote Levadex, banking on a potential approval of the drug by U.S. and Canadian regulatory authorities to pain specialists and neurologists.
The FDA has set the schedule on April 15 for its decision on the pending application of Levadex. MAP first submitted the drug for approval in May 2011, but later resubmitted the application in October 2012 along with additional data to answer some FDA questions.
The $ 25 per share offer price by Allergan is a generous 60 per cent premium over MAP’s stock price, which closed at $ 15.58 on Tuesday’s trading on the Nasdaq.
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