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Mar 16, 2009
 |  BioCentury  |  Finance

Second shoe scenarios for CVT

Once the dust had settled last Friday, the market seemed to be betting that Astellas would come back over the top of Gilead's $20 a share bid for CV Therapeutics(NASDAQ:CVTX). The white knight offer from Gilead (NASDAQ:GILD), which values CVT at $1.4 billion, was 25% higher than the $16 per share unsolicited bid launched by Astellas in November that had been twice rejected by CVT's board.

The pharma's $1.1 billion cash offer represented a 41% premium to CVT's close of $11.35 on Jan. 27, the day before the bid was made public. However, the biotech's board rejected the offer after concluding it undervalued the company.

CVT's appeal as an acquisition target is its two marketed products: angina drug Ranexa ranolazine and myocardial perfusion imaging stress agent Lexiscan regadenoson, which the pharma sells in the U.S. Sales of Ramexa were $109.3 million last year, while Astellas reported 2H08 sales of $71.1 million for Lexiscan, which was launched in June.

CVT also has a pair of cardiovascular products in Phase III testing: Adentri (CVT-124, BG9928) is an adenosine A1 receptor antagonist...

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