Millennium Pharmaceuticals, Inc. has entered into an agreement to acquire AnorMED, Inc., a Canadian-based biopharmaceutical company with a late-stage phase III hematology-oncology product, Mozobil.
Under the terms of the agreement approved by the boards of directors of both companies and the largest shareholder of AnorMED, Millennium will commence within ten days a cash tender offer to acquire the shares of AnorMED stock at a price of US $12.00 per outstanding share, for a total purchase price of approximately $515 million. This represents approximately a 21 per cent premium over the closing price of AnorMED's shares on September 25, 2006.
Mozobil, currently in late-stage phase III clinical development, is anticipated to be launched in the US in 2008 subject to successful completion of clinical trials and regulatory approval. Mozobil, a small molecule CXCR4 chemokine antagonist, works by releasing stem cells from the bone marrow into circulation, improving the ability to collect the stem cells for transplant. Stem-cell transplants offer a potential cure for patients with certain haematological malignancies. Currently, a majority of the 50,000 to 60,000 transplant-eligible patients worldwide are unable to optimise the benefit of transplant due to sub-optimal stem-cell collection.
Assuming the acquisition is completed and Mozobil is approved, the product would be sold by Millennium's oncology sales force, which currently details VELCADE (bortezomib) for Injection, the market leader in relapsed multiple myeloma.
"Mozobil is an excellent strategic fit with Millennium's focus in haematology-oncology, where our product VELCADE leads the market in treating patients with relapsed multiple myeloma," said Deborah Dunsire, MD, president and CEO, Millennium. "This proposed acquisition is aligned with our goal to bring in products that accelerate revenue growth, leverage our oncology sales infrastructure and benefit from our development, regulatory and commercial expertise. We are extremely excited to carry forward the innovative work of the AnorMED team and to improve outcomes for transplant-eligible patients by bringing Mozobil to market."