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February 20, 2009

CV Therapeutics Says Astellas’ $1B Offer Is Insufficient

  • CV Therapeutics has rejected Astellas Pharma’s $1 billion unsolicited proposal. The board previously rejected the same proposal in November 2008, when Astellas approached the company privately with an offer of $16 per share.

    As was expected, CV Therapeutics found that Astellas’ bid was below the firm’s true value. The company, which was trading around $11 before Astellas made its offer public, has been valued over $15 ever since but hasn’t quite reached Astellas’ $16 mark. Nonetheless, the company reiterates that 2008 was a good year on various fronts and it expects 2009 to be even better.

    The company is referring to the U.S. approval of Lexiscan in April for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging, the EMEA approval in July of Ranexa for chronic angina, and the label-extension received from the FDA for Ranexa in February allowing its use as a first-line therapy.

    Simultaneously, the company entered two transactions for these products, which brought in $255 million in cash. Menarini paid $70 million for European rights to Ranexa, and TPG-Axon Capital paid $185 million for 50% of the company’s royalties on Lexiscan in North America. CV Therapeutics earned another $10 million from TPG with the launch of Lexiscan.



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