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Apr 26, 2007

Biosite Prefers Inverness to Beckman Coulter for Take Over

  • Biosite’s board of directors determined that Inverness Medical’s offer to acquire the company was superior to Beckman Coulter’s. The company has less than a week to up its $85 bid to a price deemed at least as favorable as Inverness’ $90 proposal.

    On March 26, through a cash tender offer, Beckman Coulter said it would pay $1.55 billion, or $85 per share, for Biosite.  On April 5, Inverness countered with an unsolicited letter proffering $90 per share except the 4.9% it already owns. The company further solidified its proposal with today’s binding offer to Biosite.

    Biosite continues trading above both company’s merger bid at $92.92. Beckman Coulter still hasn’t regained the value it lost with the initial proposal and opened today at $62.30. The day before it made Biosite the offer, it closed with a $67.08 price but consequently its stock has been stuck between approximately $60 and $66. The same is true for Inverness, which was priced at $44.81 just prior to its rival bid and is now at $39.90.

    Beckman Coulter has until 12:01 a.m., PDT, May 2 to make an enhanced binding offer. Beckman Coulter’s original submission will expire at 12 a.m., EST, April 27 unless either Beckman Coulter or Biosite extends the date.

    If a revised transaction is not made, Biosite will axe its agreement with Beckman Coulter and enter into the proposed Inverness merger deal. Biosite will be required to pay Beckman Coulter a $50-million transaction fee.

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Scientifically Studying Ecstasy

MDMA (commonly known as the empathogen “ecstasy”) is classified as a Schedule 1 drug, which is reserved for compounds with no accepted medical use and a high abuse potential. Two researchers from Stanford, however, call for a rigorous scientific exploration of MDMA's effects to identify precisely how the drug works, the data from which could be used to develop therapeutic compounds.

Do you agree that ecstasy should be studied for its potential therapeutic benefits?

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