Shares of Eyetech soared this morning after OSI Pharmaceuticals announced it would buy the drug developer for $935 million. Eyetech developed and co-markets Macugen for macular degeneration. OSI will pay $20 per share, a 43 percent premium. Seventy-five percent of the purchase price will be paid in cash, the rest in stock. Analysts say that the move will expand OSI beyond its trademark cancer treatments, but OSI's shares tumbled about 10 percent on the news.
"The acquisition of Eyetech represents the rare opportunity to combine two inherently strong growth stories and create a dynamic new entity with real strength. The combination of OSI and Eyetech will create a substantial biopharmaceutical company with over $600 million of projected revenues in 2006 and strong growth prospects for the future," commented Colin Goddard, PhD, CEO of OSI Pharmaceuticals.
- read this AP story for more