BioCentury
ARTICLE | Finance

Vaccinating investors

May 26, 2003 7:00 AM UTC

One of the quietly expressed fears in Europe is that as biotech companies become successful, they will be picked off by their more mature U.S. cousins. That is precisely what happened last week, as one of the U.K.'s most profitable biotechs was effectively taken of the map by Chiron Corp.

The event was seen by investors in PowderJect Pharmaceuticals plc (LSE:PJP, Oxford, U.K.) with mixed feelings. From a patriotic point of view, it's hard to see a bellwether company disappear into the hands of a foreign owner. But on the other hand, the widely expected bid at 550p per share, which valued the company at about £502 million ($814 million), gives them a healthy return. The offer is a 14% premium on PJP's close on April 25, the day before the company announced it had been approached regarding an acquisition. It also is a gain of 294.5p (117%) since Oct. 20, 2002, the day before PJP confirmed it had received an offer from an undisclosed party. ...