Top tiers in takeovers

M&A activity picked up on Monday with a fury with three top tier biotech companies, Elan (ELN), Genzyme General (GENZ) and Human Genome Sciences (HGSI), announcing deals totaling nearly $3 billion.

ELN entered a definitive agreement to acquire Dura Pharmaceuticals (DURA ) for $1.8 billion in a stock transaction. DURA shareholders will receive 0.6715 of an ELN ADS for each DURA share owned. The boards of both companies have approved the merger and are recommending DURA stockholders follow suit. The deal is expected to close in the fourth quarter. ELN said the acquisition will increase its U.S. sales force by 500 to over 1000. DURA brings four marketed products to ELN: Maxipime, an injectable cephalosporin antibiotic; Ceclor CD, an oral cephalosporin antibiotic; Azactam, an injectable monobactum antibiotic; and Nasarel, an inhaled corticosteroid. ELN expects DURA to add sales revenues of $300 million in 2001. Additionally, DURA has the Spiros drug delivery platform. ELN was down $3.188 to $48.938 and DURA was up $3 (10 percent) to $31.625 on Monday. ...