Bristol-Myers Squibb Co has decided to buy Inhibitex Inc for $26.00 per share, the news reports said. As per the terms of the deal, the bio-pharmaceutical company will acquire Inhibitex in an all-cash agreement worth $2.5 billion.
The senior management of both pharmaceutical companies have granted their nod to go-ahead with the deal.
Bristol-Myers CEO Lamberto Andreotti said, “The acquisition of Inhibitex builds on Bristol-Myers Squibb’s long history of developing, discovering and delivering innovative new medicines in virology and enriches our portfolio of investigational medicines for hepatitis C.”
The pharmaceutical company Bristol Myers will also fund the acquisition from its own existing cash resources, the reports said. It will also introduce a cash tender offer for all the outstanding shares of Inhibitex’s shares of common stock.
The deal will also benefit both the pharmaceutical companies to complete the merger. This will be done by converting all shares not tendered into the right to get $26.00 per share cash.
The agreement between the 2 pharma companies will also be an advantage for Bristol-Myers as it will help in enhancing its HCV portfolio and also its long-term growth potential.
Bristol-Myers is a bio-pharmaceutical company based in New York. The company manufactures prescription pharmaceuticals in areas like diabetes, hepatitis and cancer. Inhibitex is a clinical-stage biopharma company. It is involved in discovery and development of new drugs.
