Novexel to be acquired by AstraZeneca
Novexel announced that its shareholders have signed a definitive agreement whereby Novexel shall be acquired by AstraZeneca for a total cash consideration of up to $505 million, including contingent payments and the net cash position of the company at closing. The transaction is expected to close in the first quarter of 2010, subject to certain customary conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976.
Under the terms of the agreement, AstraZeneca will acquire 100 percent of Novexel’s shares for $350 million in cash payable upon completion and will pay up to an additional $75 million to Novexel shareholders if specified development milestones are reached. AstraZeneca will also transfer to Novexel shareholders an amount equivalent to the cash balance of Novexel at closing. The cash balance of Novexel at closing is expected to be approximately $80 million. This transaction will provide AstraZeneca with a portfolio of clinical and preclinical compounds which are designed to address infections caused by drug-resistant bacteria in the hospital.
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