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Feb 12, 2007

Cytyc Pays $452M for Adeza

  • Cytyc reported that it will purchase Adeza, manufacturer of women’s health products, for $452 million, or $24 per share. This represents a premium of over 54% compared to Adeza’s $15.53 closing price on Friday. Adeza opened trading on Monday at $23.75. 

    Adeza's key product, FullTerm™, The Fetal Fibronectin Test, is used to identify women at risk of preterm birth. "This technology offers clear clinical and cost benefits for maternal-fetal care,” notes Patrick J, Sullivan, cytyc's chairman, president, and CEO, “and we believe our infrastructure, experience, and expertise in this sector will accelerate adoption of this product worldwide."

    The market opportunity for FullTerm is estimated to be in excess of $500 million worldwide, and Adeza's current revenue for this product is approximately $50 million annually, according to Cytyc. The company expects its earnings to break even in 2007 and to be at least $0.05 accretive to 2008 diluted earnings per share with this transaction.

    Adeza’s candidate for the prevention of preterm birth for patients with a history of preterm birth, Gestiva, received an approvable letter in October 2006 and has been granted orphan drug status. Cytyc predicts the worldwide market opportunity for Gestiva to be in excess of $100 million.

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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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