Merck & Co., Inc. has successfully completed the acquisition of NovaCardia, Inc., a privately held clinical-stage pharmaceutical company focused on cardiovascular disease. This acquisition adds rolofylline (KW-3902), NovaCardia's investigational Phase III compound for acute heart failure to Merck's pipeline.
Merck acquired all the outstanding equity of NovaCardia for a total purchase price of $366.4 million (including $16.4 million of cash and investments on hand at closing), which was paid through the issuance of 7.3 million shares of Merck & Co., Inc. common stock to the former NovaCardia shareholders. Approximately $325 million of the purchase price will be accounted for as in-process research and development costs, which is expected to result in a charge to Merck's third quarter earnings of 15 cents per share.
According to a Merck press release, the company will provide further details about its third quarter financial performance as well as its full year guidance as part of the company's regular third quarter earnings release on October. 22, 2007.