The companies signed a definitive agreement, previously unanimously approved by both companies’ boards of directors, for a $25 per share cash offer, amounting to about $958 million in total equity value.
Allergan had already contracted the rights to co-market MAP’s Levadex drug in both the U.S. and Canada, pending regulatory approvals in those regions. The lavish offer, which represents a 60% premium over the MAP’s share price at the time of the announcement, suggests an optimistic outlook for Levadex’s regulatory and commercial prospects in the U.S.
Levadex is an orally inhaled drug intended for acute treatment of migraine in adults. MAP submitted the drug for FDA approval in May 2011, shortly after signing the co-marketing agreement with Allergan in January 2011.
MAP resubmitted its FDA New Drug Application in October 2012 to include additional data and responses to FDA comments, and the company announced the next month that the FDA had accepted the application for review.
Under FDA goals for drug review applications, the company expects a response on Levadex no later than April 15, 2013, according to a press release.
Irvine, Calif.-based Allergan, perhaps best known for Botox, views the acquisition as a snug fit for both companies. Botox has been used for cosmetic enhancement and for treatment of overactive bladder, but it’s also approved in 56 countries for treatment of chronic migraine.
"Allergan has a record of leadership in the Neurosciences field and, according to a recent physician survey, is now perceived as the #1 company in prophylactic migraine management by physicians," Allergan chairman, president & CEO David Pyott said in prepared remarks. "We plan to capitalize on this depth of expertise in Neurology as we continue the global development of Levadex as a potential acute treatment for migraine that is complementary to Botox and use MAP’s proprietary drug particle and inhalation technologies to generate new pipeline opportunities."
The move brought down AGN shares modestly by the end of the day today, where they were 1% down at $104.54. MAPP shares skyrocketed 58.6% to close at $24.71 from an opening price of $11.11.