Cougar, J&J deal

Johnson & Johnson plans to acquire Cougar in a tender offer at $43 per share, or about $1 billion in cash. The price is a 16% premium to Cougar's close of $36.98 on May 21, before the deal was announced. Cougar's lead, abiraterone acetate ( CB7630), is in two Phase III trials to treat metastatic, castration-resistant prostate cancer: one in patients who have progressed after docetaxel-based chemotherapy has failed; the other in patients who have yet to receive chemotherapy. The compound also is in Phase I/II testing for breast cancer. Abiraterone is an inhibitor of steroidal enzyme 17alpha-hydroxylase/C17,20 lyase ( CYP17). Cougar received exclusive, worldwide rights to develop and commercialize CB7630 from BTG plc (LSE:BGC, London, U.K.) in 2004.

Cougar also has noscapine ( CB3304). The oral, opium-derived alkaloid that alters microtubule dynamics is in a Phase I trial for multiple myeloma (MM). The boards of both companies have approved the deal, which is expected to close next quarter. ...