Boston, MA 06/10/2014 (wallstreetpr) – Global health care company Merck & Co., Inc. (NYSE:MRK) announced that it struck a definite agreement to buy Idenix Pharmaceuticals Inc (NASDAQ:IDIX), a bio-pharmaceutical company, for $3.85 billion. The acquisition is expected to help Merck widen its portfolio on Hepatitis C.
Acquisition of Idenix
As part of the definitive deal, Merck & Co., Inc. (NYSE:MRK). will pay $24.50 a share in cash for Idenix for a total purchase value of about $3.85 billion. The bio-pharmaceutical company has developed a potential portfolio consisting of hepatitis C candidates due to its expertise in the field of nucleotide chemistry or nucleoside besides prodrug technologies.
Merck & Co. believes that Idenix’s new hepatitis candidates support its potential therapies in establishment besides helping advance its work to develop a drug with as far as possible the short duration of treatment that will help millions of patients around the globe. The potential drug candidate is expected to be once-daily, ribavirin-free, all oral, pan-genotypic regimen and highly effective.
Idenix Pharmaceuticals Inc (NASDAQ:IDIX) believes that the deal creates value for its shareholder by aligning its strong portfolio of candidates with a well-known global healthcare company for its future success. The company has three drug candidates currently in its clinical development, and these candidates are being assessed for their likely inclusion in the development of pan-genotypic fixed dose, all oral combination regimens.
Tender Offer
Merck & Co. has indicated that it will launch a tender offer through its subsidiary to buy Idenix Pharmaceuticals’ all outstanding shares and will close upon meeting certain conditions laid down in the deal as well as the regulations.
After the closure of the tender officer, the global health care company has another option of buying all Idenix Pharmaceuticals Inc (NASDAQ:IDIX) shares by a second-step merger. The deal is expected to close in the third quarter of the current year.
Merck & Co., Inc. (NYSE:MRK). received financial advice from Credit Suisse, while Hughes Hubbard & Reed LPP provided legal advice for the transaction. Idenix engaged Center view Partners as its financial advisor while Sullivan & Cromwell was its legal advisor.
