Galen buys Warner Chilcott

The drug delivery and women's health company Galen (LSE:GAL) said it will acquire WCRX, a women's healthcare sales and marketing play, for $296.5 million in stock. The transaction represents a 33 percent premium over the WCRX's closing price of $18 on May 3 and would create a specialty pharma group with a market cap of 969.1 million ($1.5 billion). The merged group will then seek a NASDAQ listing of GAL ADSs.

The entity would have pro forma revenues of $233.2 million and a sales force of 325 covering the U.S., U.K. and Ireland. GAL's pipeline includes its intravaginal ring drug delivery system, which is the basis for an estradiol-based hormone replacement therapy. GAL has a filed a marketing application filed in the U.K. and a U.S. NDA is planned for late 2000. WCRX has 260 sales people in the U.S. focused on women's healthcare. The company recently acquired Estrace cream, Ovcon 35 and Ovcon 50 from Bristol-Myers Squibb (BMY). The companies said they expect to seek additional acquisitions and in-licensing deals. ...