OSI buying Eyetech
The market sold off OSI (OSIP) shares following the company's Sunday announcement that it will buy Eyetech (EYET) for $935 million, including $701 million in cash and $234 million in 5.7 million shares of stock. On Monday, OSIP fell $8.85 (22%) to $31.92 on 27.6 million shares, while EYET gained $4.14 (30%) to $18.13 on 42.7 million shares. The deal values EYET at $20 per share. This is a 43% premium to EYET's Friday close of $13.99, or $629.6 million.
EYET was the bellwether biotech IPO of 2004, when it raised $136.5 million and was valued at $808.5 million. The company had a market cap of more than $1 billion in May before Genentech (DNA) released Phase III data on Lucentis ranibizumab (see BioCentury, May 30, 2005). Lucentis would compete with EYET's Macugen pegaptanib, which is approved for age-related macular degeneration (AMD). In the second quarter, Macugen net sales were $47 million, and EYET expects full year net sales of $175-$190 million. ...