Allos Therapeutics Inc.
) announced the extension of the offer period for the purchase of
the entire outstanding common stock of the former. The offer
period, which was set to expire on August 20, 2012, has been
extended until September 4, 2012 (5 PM ET).
We note that the buyout offer was extended to enable both
companies to comply with the request of the Federal Trade
Commission for additional information regarding the deal under the
antitrust laws. The companies stated that as of August 17, 2012,
59.9% of Allos' outstanding shares had been tendered. We note that
the tender offer period has been extended quite a few times
We remind investors that the deal was announced in April 2012.
Per the terms of the deal, Spectrum Pharma will acquire Allos for
$1.82 per share in cash, in addition to one contingent value right
(CVR). The CVR, which will not be traded in the public domain,
makes each Allos shareholder eligible to receive a further $0.11
per share in cash depending on the conditional European approval
and achievement of certain milestones of Allos' sole marketed drug,
We remind investors that Folotyn is available in the US for the
treatment of patients with relapsed or refractory peripheral T-cell
lymphoma (PTCL). The drug is under review in the EU for the
Currently, Spectrum Pharma's product portfolio comprises two
marketed products -Fusilev (advanced metastatic colorectal cancer
and for rescue in osteosarcoma (a form of bone cancer) patients
following treatment with a high-dose of chemotherapy drug,
methotrexate) and Zevalin (for treating patients suffering from
The addition of Folotyn will further strengthen the oncology
portfolio at Spectrum Pharma. At the time of announcing the deal,
management at Spectrum Pharma stated that both Zevalin and Folotyn
target the same set of doctors for treating different cancer forms.
This makes the deal all the more sound strategically.
Currently, we have a Neutral recommendation on Allos in the long
run. However, we have an Outperform recommendation on
Spectrum Pharma. Both companies carry Zacks #3 Ranks ("Hold") in
the short run.
ALLOS THERAPEUT (ALTH): Free Stock Analysis
SPECTRUM PHARMA (SPPI): Free Stock Analysis
To read this article on Zacks.com click here.