) recently announced that it has commenced a cash tender offer to
purchase all the shares of
MAP Pharmaceuticals, Inc.
) for $25.00 per share.
Allergan had announced its intention to acquire MAP Pharma
last month. The offer price represents a premium of 60% over MAP
Pharmaceuticals' closing price on Jan 22, 2012. The deal is
expected to be worth approximately $958 million. The tender offer
and withdrawal rights will expire at the end of Feb 28, 2013.
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. Allergan and
MAP Pharma had entered into a collaboration agreement to promote
Levadex in Jan 2011.
The acquisition is expected to close in the second quarter.
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
We remind investors that last month 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
) look more attractive with a Zacks Rank #2 (Buy).
ALLERGAN INC (AGN): Free Stock Analysis
LILLY ELI & CO (LLY): Free Stock Analysis
MAP PHARMACEUT (MAPP): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
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