Anglo-Swedish drug maker AstraZeneca Plc (AZN, AZN.L) Tuesday said it has entered into a definitive agreement to buy New Jersey-based Omthera Pharmaceuticals, Inc (OMTH) for $12.70 per share or about $323 million. After incorporating Omthera's cash balances of nearly $63 million, the deal has an enterprise value of around $260 million.
In addition to the cash payment, each Omthera shareholder will receive contingent value rights of up to about $4.70 per share, equating to around $120 million in total, if specified milestones related to Epanova are achieved or if a milestone related to global net sales is achieved. This will bring the total potential acquisition cost to about $443 million.
The terms are approved by the boards of Omthera and AstraZeneca, and the deal is expected to close in the third quarter of 2013, subject to approval of Omthera's shareholders.
Princeton, New Jersey-based Omthera is a specialty pharmaceutical company focused on development and commercialization of new therapies for abnormal levels of lipids in blood, referred to as dyslipidemia. Omthera develops therapies for patients with elevated triglyceride levels and increased risk of cardiovascular disease.
AstraZeneca noted that Omthera has completed pharmacokinetic and Phase III clinical studies to investigate safety and efficacy profile of Epanova, a coated soft gelatin capsule containing a complex mixture of polyunsaturated free fatty acids derived from fish oils.
Omthera's investigational product, Epanova is indicated for the potential treatment of patients with very high triglycerides. It is a novel omega-3 free fatty acid composition that has been shown to bolster levels of eicosapentaenoic acid and docosahexaenoic acid significantly in the blood.
Pascal Soriot, chief executive officer of AstraZeneca said, "The number of people with elevated triglyceride levels is rising rapidly across the world, due in part to the increasing prevalence of obesity and diabetes...Epanova offers real potential both as a distinctive monotherapy for the treatment of hypertriglyceridemia and in combination with Crestor for patients at high risk of adverse cardiovascular events."
Omthera is expected to file a new drug application in the US for Epanova in mid-2013.
The board of Omthera has recommended its shareholders approve the deal.
Omthera shares ended on Friday at $6.77 on the Nasdaq. In the pre-market activity, the shares are currently up about 89.07 percent.
AZN.L is currently trading at 3,539 pence, up 111 pence or 3.24 percent, on a volume of 1.10 million shares on the LSE.
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