Gilead Sciences Inc. (GILD) agreed to acquire CV Therapeutics
Inc. (CVTX) for $1.4 billion, helping CV to stave off a hostile
takeover bid by Japan's Astellas Pharma Inc. (4503.TO).
Gilead's white-knight, all-cash, bid is $20 a share. Astellas'
last offer of $16 was a 41% premium to CV's closing price the day
before the offer was made in January. CV closed Wednesday at $16
and didn't trade premarket, while Gilead fell 3.5% to $42.50.
CV Chief Executive Louis Lange said the company was "very
pleased with the offer Gilead presented," calling it "compelling
value for our shareholders."
The transaction is expected to begin adding to Gilead's earnings
in 2011 after cutting them this year and being neutral to slightly
positive in 2010.
Gilead Chairman and CEO John C. Martin said the deal will
strengthen the biopharmaceutical company's growing cardiovascular
portfolio.
Gilead has been one of a few companies to continue to perform
well during the recession, as its HIV treatments show resistance to
the downturn in broader spending. That's in contrast to the
pharmaceutical and medical companies suffering as penny-pinching
consumers choose to cut pills in half or forgo treatments.
Gilead's shares, after a 20% swoon the past month, are down just
8.3% the past year through Wednesday.
The deal for CV comes nearly a month after the company again
rejected the nearly $1 billion unsolicited takeover offer from
Astellas. The company first approached CV in November; CV
Therapeutics rejected that offer and declined to discuss the
transaction with Astellas, prompting the Japan firm to go public
with its interest.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com