TOKYO, March 2 (Reuters) - Shares of Astellas Pharma Inc edged lower on Tuesday after it launched a hostile bid for U.S.-based OSI Pharmaceuticals, seeking to gain access to its blockbuster Tarceva cancer drug.
Shares of Astellas, Japan's second-largest drugmaker, were down 1.5 percent at 3,295 yen by mid-morning after falling as much as much as 3 percent. That underperformed the drug sector index, which was up 0.2 percent.
OSI shares surged 51.8 percent to $56.20, well above Astellas's $52-per-share offer as analysts expected a higher price or even a rival bid from potential suitors such as Swiss drugmaker Roche Holding AG, OSI's partner on Tarceva.
Analysts also noted that Astellas had already failed in a hostile takeover attempt for U.S. drugmaker CV Therapeutics a year ago, when it was outbid by Gilead Sciences.
'Astellas's tender offer for CV Therapeutics announced 12 months ago ended in failure when Gilead Sciences unexpectedly emerged as a white knight. We await moves from rivals -- Roche included -- and they could push up the price,' J.P. Morgan Securities analyst Masayuki Onozuka said in a note to clients.
OSI said it had previously rejected the offer from Japan's No.2 drugmaker as too low and advised shareholders not to act at this time. Astellas's offer represents a 40 percent premium to the biotech company's Friday closing price.
(Reporting by Yumiko Nishitani; Editing by Michael Watson) ((yumiko.nishitani@thomsonreuters.com; +81 3 6441 1803; Reuters Messaging: yumiko.nishitani.reuters.com@reuters.net)) Keywords: ASTELLAS/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Shares of Astellas, Japan's second-largest drugmaker, were down 1.5 percent at 3,295 yen by mid-morning after falling as much as much as 3 percent. That underperformed the drug sector index, which was up 0.2 percent.
OSI shares surged 51.8 percent to $56.20, well above Astellas's $52-per-share offer as analysts expected a higher price or even a rival bid from potential suitors such as Swiss drugmaker Roche Holding AG, OSI's partner on Tarceva.
Analysts also noted that Astellas had already failed in a hostile takeover attempt for U.S. drugmaker CV Therapeutics a year ago, when it was outbid by Gilead Sciences.
'Astellas's tender offer for CV Therapeutics announced 12 months ago ended in failure when Gilead Sciences unexpectedly emerged as a white knight. We await moves from rivals -- Roche included -- and they could push up the price,' J.P. Morgan Securities analyst Masayuki Onozuka said in a note to clients.
OSI said it had previously rejected the offer from Japan's No.2 drugmaker as too low and advised shareholders not to act at this time. Astellas's offer represents a 40 percent premium to the biotech company's Friday closing price.
(Reporting by Yumiko Nishitani; Editing by Michael Watson) ((yumiko.nishitani@thomsonreuters.com; +81 3 6441 1803; Reuters Messaging: yumiko.nishitani.reuters.com@reuters.net)) Keywords: ASTELLAS/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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