Allergan, Inc. ( AGN ) recently
announced that the tender offer to purchase the shares of
MAP Pharmaceuticals, Inc. ( MAPP ) and withdrawal
rights have expired on Feb 28, 2013. We note that Allergan had
commenced the cash tender offer to buy MAP Pharma shares for $25.00
on Jan 31, 2013. At the end of the offer period approximately 75.1%
of the MAP Pharma shares were tendered.ALLERGAN INC (AGN): Free Stock Analysis ReportLILLY ELI & CO (LLY): Free Stock Analysis
ReportMAP PHARMACEUT (MAPP): Free Stock Analysis
ReportSHIRE PLC-ADR (SHPG): Free Stock Analysis
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We note that on Jan 22, 2013, Allergan announced its intention to
acquire MAP Pharma. The offer price represented a premium of 60%
over MAP Pharmaceuticals' closing price on that date. The deal is
expected to be worth approximately $958 million.
The acquisition will give Allergan the exclusive rights to
migraine candidate, Levadex, in the US. Levadex is currently under
regulatory review for the treatment of adults suffering from acute
migraine. A response from the US Food and Drug Administration (FDA)
should be out by Apr 15, 2013.
The acquisition is expected to close towards the end of the first
quarter or in the second quarter of 2013. After the completion of
the transaction, MAP Pharmaceutical will become a wholly owned
subsidiary of Allergan.
We are positive on Allergan's decision to buy MAP Pharmaceuticals.
Levadex' approval would be a major boost for Allergan and will
complement the company's portfolio, which includes Botox
(onabotulinumtoxinA). Botox is indicated for several indications
including the treatment of chronic migraine headache.
We remind investors that in Jan 2013, the FDA approved Botox for
the treatment of patients suffering from overactive bladder (OAB)
with symptoms of urge urinary incontinence, urgency and
Allergan carries a Zacks Rank #3 (Hold). Right now, Eli
Lilly and Company ( LLY ) and Shire
plc ( SHPG
) look more attractive in the pharma space with a Zacks Rank #2