Filed under: Deals, Engagements, Value and lack thereof

Bristol-Myers Squibb (NYSE: BMY) has entered a definitive merger pact where it will acquire Kosan Biosciences Inc. (NASDAQ: KOSN). Bristol-Myers Squibb will pay $5.50 per share in cash for each share of Kosan. The biotech’s stock was only at $1.65 yesterday and its 52-week trading range is $1.28 to $6.49.

This will translate to a purchase price of approximately $190 million after deducting Kosan’s projected net cash balance at June 30, 2008. The deal has also been unanimously approved by the boards of directors of both Bristol-Myers and Kosan.

The acquisition of Kosan will enhance Bristol-Myers Squibb’s pipeline will get to enhance its pipeline with compounds in two important classes of anticancer agents, called novel Hsp90 (heat shock protein 90) inhibitors and epothilones.

You can read more about the full terms and more importantly what the real acquisition is about in the full story at BioHealthInvestor.com. This is an important deal despite the small size of Kosan as it could create a game changer in smaller biotech premium mergers.

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This entry was posted on Sunday, June 8th, 2008 at 8:26 am and is filed under Engagements and Deals News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.