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Allergan to buy MAP Pharmaceuticals
January 23rd, 2013
IRVINE, Calif. & MOUNTAIN VIEW, Calif. – Allergan Inc. plans to acquire MAP Pharmaceuticals Inc. in a deal valued at about $958 million.
The drug companies said Tuesday evening that the transaction will be done through a cash tender offer followed by a second-step merger. The per-share cash offer price represents a 60% premium over MAP's closing stock price of $15.58 on Jan. 22.
Plans call for the acquisition to close late in the first quarter or in the second quarter of this year, according to Allergan and MAP. The deal has been unanimously approved by the boards of both companies.
A biopharmaceutical company, MAP specializes in neurology therapies, including Levadex, an inhaled drug for the potential acute treatment of migraine in adults. The medication is currently under review with the Food and Drug Administration.
"Allergan has a record of leadership in the neurosciences field and, according to a recent physician survey, is now perceived as the No. 1 company in prophylactic migraine management by physicians," stated David Pyott, Allergan's chairman and chief executive officer. "During the past few years, Allergan has received regulatory approvals in 56 countries for Botox for use in the treatment of chronic migraine. As a result, thousands of patients who suffer from chronic migraine have benefited from this important treatment option. We plan to capitalize on this depth of expertise in neurology as we continue the global development of Levadex as a potential acute treatment for migraine that is complementary to Botox and use MAP's proprietary drug particle and inhalation technologies to generate new pipeline opportunities."
In January 2011, Allergan entered into a collaboration pact with MAP to co-promote Levadex, contingent upon regulatory approvals in the United States and Canada, to neurologists and pain specialists in those markets. In May 2011, MAP initially submitted a New Drug Application (NDA) for Levadex to the FDA. Then in October 2012, MAP resubmitted its NDA, which included additional data and provided responses to FDA comments. And last November, MAP announced that its NDA resubmission for Levadex was accepted for filing by the FDA and that the FDA has classified the resubmission as a complete Class 2 response and has set a goal date of April 15, 2013, under the Prescription Drug User Fee Act (PDUFA).
"Through our dedicated employees at MAP Pharmaceuticals, we have made tremendous progress to date with our lead product candidate, Levadex, enabling us to realize substantial value for our stockholders through this transaction," commented Timothy Nelson, MAP's president and CEO. "We are pleased that we and Allergan share similar values and a common vision in neuroscience that make for a strong cultural and scientific fit between our companies. We believe this acquisition by our partner Allergan will increase the potential for our product candidates to make a meaningful difference for patients we have worked so hard to serve."