Elan to acquire Liposome

In a move to enter the oncology market, ELN will acquire LIPO for about $575 million in stock. LIPO shareholders will receive 0.3850 ELN ADSs for each LIPO share held. Based on ELN's stock price on March 3 of $39.688, the transaction values LIPO stock at $15.28. ELN also may pay LIPO shareholders up to $98 million depending on EU approval of Evacet liposomal doxorubicin, to treat breast cancer, and Evacet reaching certain sales milestones outside the U.S.

In February, LIPO said that additional clinical data will be needed to support approval of Evacet to treat metastatic breast cancer based on discussions with the FDA regarding additional data analyses submitted at the end of 1999 (see BioCentury, Jan. 17). The original NDA for the product was withdrawn in October 1999. Evacet is under review in Europe and Canada. ...