Gilead Sciences acquired Myogen in what will be a two-step process, worth approximately $2.5 billion. “Myogen represents a unique scientific and strategic fit with our company,” says John C. Martin, Ph.D., president and CEO, Gilead Sciences, “bringing to Gilead a late-stage product candidate that addresses an area of significant unmet medical need and further enhances our growing focus on pulmonology as initially established through our recent acquisition of Corus Pharma.”
The first step of the acquisition comprised of a cash tender offer for all Myogen’s outstanding common stock at $52.50 per share. The next step is a cash merger in which Gilead will acquire any remaining outstanding Myogen common stock at the same price.
Upon completion of the second-step, Myogen will become a wholly owned subsidiary of Gilead. The value of the transaction is approximately $2.5 billion. The deal is expected to be dilutive to Gilead’s earnings in 2007 and 2008, neutral in 2009, and accretive in 2010 and beyond.
Gilead and Myogen believe data from two completed pivotal Phase III studies evaluating the safety and efficacy of Myogen’s lead product candidate, ambrisentan, as a potential treatment for PAH would support an NDA. Myogen currently expects to file an NDA as early as the fourth quarter of 2006.
Ambrisentan, an orally available endothelin receptor antagonist, has been granted orphan drug status for the potential treatment of PAH in both the U.S. and Europe. GlaxoSmithKline holds rights to the product outside the U.S.