Bristol-Myers Squibb has unveiled plans to acquire the hepatitis C specialist Inhibitex in a deal valued at approximately $2.5bn.
US-based Bristol-Myers Squibb will pay $26 per share, representing a 163% premium over its closing price on 6 January, and the Inhibitex board of directors has approved of the deal.
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Other shareholders, holding 17% of the company’s common stock, have also entered into agreements with Bristol-Myers Squibb in order to support the merger.
Inhibitex’s lead compound, INX-189, is an oral nucleotide polymerase inhibitor currently in Phase II development, having demonstrated high levels of antiviral activity.
The company also has its FV-100 nucleoside inhibitor, used to reduce pain associated with shingles, in a Phase II trial, and humanised monoclonal antibody Aurexis, which is used to treat Staphylococcus aureus bloodstream infections.
The market for hepatitis C treatments is considered a large growth area, with Gilead Sciences in particular making a strong movement into the area with its $11bn acquisition of Pharmasset in November 2011.
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By GlobalDataBristol-Myers Squibb chief executive Lamberto Andreotti said: "There is significant unmet medical need in hepatitis C. This acquisition represents an important investment in the long-term growth of the company."
Last week, Bristol-Myers Squibb was named as the ‘Best Big Drug Company of 2011’ by business magazine Forbes following a year that saw the company’s share price rise 32%.
Image Caption: Bristol-Myers Squibb headquarters in New York, US.
