Javelin receives offer from Hospira

Javelin Pharmaceuticals Inc. (NYSE-A:JAV) said it plans to terminate a merger agreement with Myriad Pharmaceuticals Inc. (NASDAQ:MYRX) this Friday after receiving a "superior" proposal from Hospira Inc. (NYSE:HSP). Hospira plans to acquire Javelin for $2.20 per share in cash, or about $141.6 million based on 64.4 million Javelin shares outstanding at March 4. The price is a 64% premium to Javelin's close of $1.34 on Friday, the day before the deal was proposed. Hospira also will provide Javelin with a working capital facility of up to $4.5 million, plus $8.3 million to repay principal and interest under a similar arrangement with Myriad and $4.4 million to cover a merger termination fee and other expenses.

Hospira will gain Javelin's Dyloject diclofenac injection, which is under FDA review to manage acute moderate to severe pain with an Oct. 3 PDUFA date. Dyloject is an IV NSAID that inhibits cyclooxygenases (COX). Hospira is a specialty pharmaceutical company with a focus on injectable generics. ...