Cytyc, Hologic deal

Women's health diagnostic companies HOLX and CYTC will merge. CYTC shareholders will receive $16.50 in cash and 0.52 HOLX shares for each CYTC share owned, which the companies valued at $6.2 billion. CYTC shareholders will own about 55% of the newco, and HOLX shareholders will own about 45%. The newco will keep HOLX's name and location. Patrick Sullivan, CYTC's president and CEO, will become chairman of the newco.

HOLX plans to commercialize Gestiva, a therapeutic candidate CYTC received when it acquired women's health company Adeza Biomedical Corp. for $452 million in cash (see BioCentury, Feb. 19). The long-acting form of a naturally occurring progesterone, 17 alpha-hydroxyprogesterone caproate (17P), received an approvable letter last year to prevent preterm birth in certain at-risk women (see BioCentury, Oct. 30. 2006). HOLX would not disclose a timeline for a planned animal study necessary for approval. ...