Allergan Purchases MAP Pharmaceuticals for $958m
Allergan have agreed to pay $25 per share in a bid to purchase Mountain View’s neurology group MAP Pharmaceuticals.
The per share cash offer signifies a 60% premium over MAP’s closing stock price on January 22nd, and is equal to roughly $958 million.
The merger agreement, which is expected to complete during the first or second quarter of 2013, has already been universally accepted by both companies’ boards of directors.
Allergan, the US-based maker of Botox, is hoping that the merge will reinforce the company’s foothold in the migraine area.
MAP’s flagship orally inhaled drug Levadex, which is currently being review by US Food and Drug Administration (FDA) as a treatment for acute migraine in adults, will complement Allergan’s own migraine treatment Botox if approved.
The organisation has already partnered with MAP on Levadex in a $157-million co-promotion agreement in April 2011, but merging with the MAP will give the business greater access to the treatment, and its other potential indications, such as cluster headaches.
For MAP, the acquisition by Allergan “will increase the potential for our product candidates to make a meaningful difference for patients we have worked so hard to serve” noted MAP’s president and chief executive, Timothy Nelson.