Novartis to Buy Out Speedel, Gain Key Drug

RDX: 之前是陶氏化學 現在是諾華 都是高得嚇人的溢價 我突然在想 是不是化學的高端開發出現了較高的市場折價？

By ANITA GREIL and JEANNE WHALEN
July 11, 2008; Page B5

Novartis AG said it plans to buy the rest of Speedel Holding AG for about 907 million Swiss francs ($881.5 million), giving Novartis full control of a blood-pressure medication the small drug company helped develop.

In a two-step process, Novartis, which previously held 9.7% of Speedel, said it paid 130 francs a share to buy an additional 51.7% from five shareholders, including Speedel Chief Executive Alice Huxley. Now, Novartis plans to buy the remaining shares in a mandatory public offer at the same price. That represents a 94% premium to Speedel's 67.10 franc closing price Wednesday.

The acquisition will give control of the blood-pressure drug Tekturna to Novartis, which has hopes of turning the medication into a blockbuster, though it has gotten off to a slow start since its launch in the U.S. last year. Novartis wants Tekturna to eventually succeed the company's blockbuster blood-pressure drug Diovan, which will face generic competition by 2012.

By acquiring Speedel, Novartis will put an end to the sometimes fractious relationship it has had with the smaller company. Novartis sells Tekturna world-wide and pays Speedel fees from the sales; last year, Speedel said Novartis wasn't paying it all it was due. Novartis said it was fully complying with their partnership deal. Later, Speedel said the dispute was resolved.

Birgit Kulhoff, pharmaceutical analyst in Zurich with Swiss private bank Rahn & Bodmer, said the acquisition is a good deal for Novartis. "Just by no longer having to pay license fees [to Speedel], Novartis will soon recoup the acquisition costs," she said. Speedel also has several other cardiovascular drugs in development.

In the mid-1990s, when Novartis gave up trying to develop Tekturna, Dr. Huxley bought the rights to the drug and set up Speedel. When Speedel overcame certain hurdles that had stymied Tekturna's development, Novartis bought back the rights to the drug. Just four weeks ago, Dr. Huxley pledged to keep Speedel independent. But the company needed a cash infusion, and raising money has become increasingly difficult for small companiesamid a global credit squeeze.

In a statement Wednesday, Dr. Huxley said: "In light of the currently very challenging environment for Speedel, i.e. the upcoming financing needs and the depressed market sentiment, I have agreed to a solution which promises a solid fundament for the future of Speedel."

Both companies are based in Basel, Switzerland.