In a bid to strengthen its contraceptive portfolio
) inked a deal to buy
) for $31.00 per share or approximately $1.1 billion in cash.
Conceptus focuses on developing and commercializing innovative
device-based solutions in permanent birth control.
Bayer intends to launch a public tender offer to acquire all
shares of Conceptus within the next 10 days. The transaction is
expected to close by mid-2013.
Bayer's impending acquisition of Conceptus will add the Essure
permanent (non-surgical) birth control system to its product
portfolio. We note that Conceptus' Essure procedure was approved
in 2002 in the US and is well accepted in the market. Bayer's
contraceptive portfolio currently includes drugs like Yasmin/Yaz
and Mirena among others.
Successful completion of the acquisition would ensure the
presence of short-term, long-term and permanent contraceptive
choices for women in Bayer's portfolio. The Essure procedure is a
strategic fit in Bayer's HealthCare business.
Bayer mentioned in its press release that more than 700,000
women around the world have already undergone this procedure.
Conceptus reported net sales of $141 million for the year
The HealthCare segment recorded revenues of €4.4 billion in
the first quarter of 2013, up 2.3% year over year. Bayer expects
revenues from the HealthCare segment to come in at around €19
billion in 2013.
We remind investors that the contraceptive market has players
Teva Pharmaceutical Industries Ltd.
Bayer, a large cap pharma company, presently carries a Zacks
Rank #4 (Sell). Other large cap pharma companies such as
) currently look more attractive. Abbvie carries a Zacks Rank #2
ABBVIE INC (ABBV): Free Stock Analysis Report
BAYER A G -ADR (BAYRY): Free Stock Analysis
CONCEPTUS INC (CPTS): Free Stock Analysis
TEVA PHARM ADR (TEVA): Free Stock Analysis
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