Myriad Pharmaceuticals, Inc has received a notice from Javelin Pharmaceuticals, Inc of its intent to terminate the merger agreement between the two companies. The notice stated that Javelin has received a competing acquisition proposal from Hospira, Inc that the Board of Directors of Javelin has determined to be a Company Superior Proposal under the terms of the Merger Agreement. Accordingly, Javelin has expressed its intent to terminate the Merger Agreement effective after the close of business on Friday April 16, 2010.
"We believe that the existing terms of the Merger Agreement between Myriad Pharmaceuticals and Javelin are fair to the shareholders of both companies and offer substantial long-term strategic value to the Javelin shareholders," said Adrian Hobden, president and CEO of Myriad Pharmaceuticals. "As we consider our response to this development over the five-business-day period available to us, our foremost priority will be to use our substantial financial resources prudently, including to develop our promising portfolio of drug candidates."
In accordance with the terms of the Merger Agreement, upon termination, Myriad Pharmaceuticals will be entitled to the repayment, in full, of the outstanding balance under the US$ 8.5 million loan and security agreement with Javelin, together with accrued interest thereon, as well as stipulated expenses of up to US$ 1.5 million plus a termination fee of US$ 2.9 million, all to paid by Javelin within one business day after the termination.
Myriad Pharmaceuticals will continue to advance its pipeline of cancer and infectious disease drug candidates, including MPC-4326, a novel maturation inhibitor for the oral treatment of human immunodeficiency virus 1 (HIV-1) infection, Azixa, a novel microtubule destabilizing agent in phase 2 trials for the treatment of cancer, and MPC- 3100, a phase-1 candidate for the treatment of cancer.
MPC-4326 is being developed by Myriad Pharmaceuticals, Inc. for the oral treatment of HIV-1 infection.
Azixa, the company's most advanced cancer drug candidate, is being developed for the treatment of advanced cancers with brain involvement.
MPC-3100 is currently in phase-1 clinical studies. MPC-3100 is a novel, fully synthetic, orally bioavailable, small-molecule inhibitor of Heat shock protein 90 (Hsp90).
Myriad Pharmaceuticals is a biotechnology company focused on discovering, developing, and commercializing novel small molecule drugs that address severe medical conditions, including cancer and HIV infection.