Update on AGN's Acquisition of MAP - Analyst Blog
February 01 2013 - 11:50AM
Zacks
Allergan, Inc.
(AGN) recently announced that it has commenced a cash tender offer
to purchase all the shares of MAP Pharmaceuticals,
Inc. (MAPP) 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.
Our Take
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 headache.
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 frequency.
Allergan carries a Zacks Rank #3
(Hold). Right now, Eli Lilly and Company (LLY) and
Sanofi (SNY) look more attractive with a Zacks
Rank #2 (Buy).
ALLERGAN INC (AGN): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MAP PHARMACEUT (MAPP): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Map Pharmaceuticals, Inc. (MM) (NASDAQ:MAPP)
Historical Stock Chart
From Apr 2024 to May 2024
Map Pharmaceuticals, Inc. (MM) (NASDAQ:MAPP)
Historical Stock Chart
From May 2023 to May 2024