Bristol-Myers will acquire Kosan Biosciences Inc. a cancer therapeutics company for $5.50 per share in cash, the companies announced on Thursday.
The transaction, could total a purchase price of approximately $190 million after deducting Kosan's projected net cash balance at June 30, 2008 the companies said in a press release.
Kosan's technology, coupled with our development and commercialization capabilities, will result in new treatment options for patients, and represents another important milestone in the execution of our strategy to become a next-generation BioPharma leader. said Bristol's chairman and chief executive officer Jim Cornelius.
Kosan's shares today rose 229.09 percent to $5.43 at the end of Thursday composite trading on Nasdaq. Its value was of $1.65 at the end of Wednesday trading.
The acquisition of Kosan will help Bristol-Myers Squibb's pipeline improve with compounds in two important kinds of anticancer agents which are novel Hsp90 (heat shock protein 90) inhibitors and epothilones which Kosan has advanced.
Bristol and Kosan expect the tender offer to close in approximately thirty days. Shares of Bristol Myers Squibb Co. closed 1.77 percent up at $22.48 and were trading last at $22.69 on Thursday electronic trade in the New York Stock EXchange.