OSI Pharmaceuticals, Inc. has completed its acquisition of Eyetech Pharmaceuticals, Inc., a biopharmaceutical company focused on the development and commercialisation of novel therapeutics to treat eye diseases. OSI acquired Eyetech for approximately $685 million in cash and approximately 5.7 million shares of OSI's common stock. Net of Eyetech's cash and net operating loss carryforwards, OSI valued the acquisition at approximately $650 million. Eyetech stockholders will receive $15 per share in cash and 0.12275 of OSI shares for each share of Eyetech owned as of the closing date.

According to a company release, this transaction positions OSI as a scientifically strong and financially diversified biotechnology company. The transaction creates a company that focuses on three therapeutic disease areas of significant market potential: oncology, eye diseases and diabetes, and effectively leverages the company's core expertise in drug discovery and development.

The company now has two major marketed products (for the treatment of cancer and age-related macular degeneration) and a robust product pipeline offering both new indications for the marketed products and novel therapeutics in all three disease areas. Tarceva and Macugen are two of the most exciting and novel biotech products launched in recent years. Tarceva, OSI's flagship product, is approved in the United States for the treatment of advanced non-small cell lung cancer (NSCLC) and pancreatic cancer and approved in the European Union for advanced NSCLC. Macugen is approved in the United States for the treatment of neovascular age-related macular degeneration and European approval is anticipated by year end.