Javelin Pharmaceuticals Inc. (JAV) and rival drug developer
Myriad Pharmaceuticals Inc. (MYRX) officially and mutually
terminated a $90 million takeover deal after Javelin last week
received a much higher $141 million offer from Hospira Inc.
(HSP).
Javelin's shares were up 2 cents at $2.19 in recent premarket
trading. Its shares are up 68% this month since the Hospira offer
of $2.20. Myriad and Hospira shares closed Friday at $5.09 and
$57.10, respectively, and were inactive premarket.
Javelin had notified Myriad last week of its intent to scrap the
deal, and was required to negotiate with the company for five
business days, giving it a chance to meet the Hospira offer.
Hospira is also providing financing help and the $4.4 million
termination fee due Myriad for that deal falling through.
Myriad had made a minimum offer of 0.282 share for each share of
Javelin, which valued Javelin's stock at $1.44 based on Friday's
close. Under the agreement, Myriad will received payments of $1.5
million for expenses and $2.9 million termination fee and repayment
of Javelin's outstanding balance on a $8.5 million loan
agreement.
Separately, Myriad shareholders are set to vote Thursday on a
plan to change the company's name to Myrexis Inc.
Last week Myriad President and Chief Executive Adrian Hobden
said as the company weighed its response, its priority would be to
use the company's "substantial financial resources prudently,
including to develop our promising portfolio of drug candidates."
He also had called Myriad's deal with Javelin "fair" to both
companies' holders.
Javelin's postoperative pain treatment Dyloject is pending U.S.
Food and Drug Administration approval. Studies are ongoing, and
Javelin submitted a new drug application in December to the
FDA.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;