Allos Falls After Second Bid for Cancer Company Is Withdrawn
Allos Therapeutics Inc. (ALTH), a cancer drugmaker that received a takeover offer from AMAG Pharmaceuticals Inc. (AMAG), dropped to a record low after saying a second bid by a rival company was withdrawn.
Allos is working with Lexington, Massachusetts-based AMAG to complete the all-stock acquisition valued at $686 million, or $2.44 a share, when the deal was announced in July, the company said in a statement today. It’s now valued at about $1.73 after declines in AMAG’s share price.
A rival pharmaceutical company that originally offered $2 a share, and boosted the bid to $2.20 a share in cash and stock on Sept. 21, sent a letter to Allos on Oct. 7 withdrawing the revised offer.
Allos is no longer in discussions or negotiations with the company, it said in the statement. Allos’s only product, Folotyn, is an intravenous treatment for T-cell lymphoma, a type of blood cancer. Allos sold $35.2 million of Folotyn in 2010, less than analyst forecasts of about $49.6 million, said Carol Werther, an analyst at Summer Street Research in Boston, in a July 21 note to clients.
Under the terms of AMAG’s offer, Allos investors are slated to receive 0.1282 share of AMAG for each Allos share they own.
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