Allos Falls After Second Bid for Cancer Company Is Withdrawn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offer from AMAG Pharmaceuticals Inc. (AMAG), dropped to a record low after saying a second bid by a rival company was withdrawn.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.
To contact the reporter on this story: Michelle Fay Cortez in Minneapolis at email@example.com
To contact the editor responsible for this story: Reg Gale at firstname.lastname@example.org