QLT buying Atrix

QLT (TSE:QLT; QLTI) will buy ATRX for about $751 million in cash and stock, net of ATRX's $104.1 million in cash. Prior to the deal announcement, ATRX's Thursday market cap was $613.6 million. ATRX shareholders will receive one QLT share plus $14.61 in cash for every ATRX share held. Using ATRX's 21.9 million shares outstanding, QLT's cash outlay is $319.8 million. QLT shareholders will own 77% of the merged company and ATRX investors will hold 23%.

The combined company's marketed products include QLT's Visudyne to treat age-related macular degeneration (AMD) and ATRX's Eligard to treat prostate cancer. By 2005, the companies expect to have on the market a sustained release formulation of Eligard and ATRX's Atrisone 5% dapsone topical gel to treat acne. The combined pipeline also will include ATRX's Atrigel sustained release formulations of octreotide and GRHP-1, which are in Phase I testing to treat carcinoid tumors and muscle wasting, respectively. Also, QLT's QLT0074 lemuteporphin third generation photodynamic therapy is in Phase II testing to treat androgenetic alopecia and Phase I/II testing for benign prostatic hyperplasia. ...