Allergan and MAP Pharmaceuticals, both based in California, have jointly announced a definitive merger agreement whereby Allergan will acquire 100% of MAP Pharmaceuticals shares for $25 per share. MAP Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing new therapies in neurology, including Levadex, an orally inhaled drug for the potential acute treatment of migraine in adults which is currently is under review with the FDA.
The transaction, which has been unanimously approved by the boards of directors of both companies, will be accomplished pursuant to a cash tender offer followed by a second step merger. The per share cash offer price represents a 60% premium over MAP's closing stock price of $15.58 on Jan. 22, 2013, and represents a total equity value of approximately $958 million, on a fully-diluted basis. The acquisition is expected to close late in the first quarter or in the second quarter of 2013.
"One of the key drivers of Allergan's continued success is our focus on medical specialties where we have extensive knowledge of physician and patient needs, and can provide a broad portfolio of products," said David E.I. Pyott, chairman of the board, president and CEO of Allergan. "Allergan has a record of leadership in the neurosciences field and, according to a recent physician survey, is now perceived as the number one company in prophylactic migraine management by physicians. During the past few years, Allergan has received regulatory approvals in 56 countries for Botox for use in the treatment of chronic migraine. As a result, thousands of patients who suffer from chronic migraine have benefited from this important treatment option. We plan to capitalize on this depth of expertise in neurology as we continue the global development of Levadex as a potential acute treatment for migraine that is complementary to Botox, and use MAP's proprietary drug particle and inhalation technologies to generate new pipeline opportunities."
Timothy S. Nelson, president and CEO of MAP Pharmaceuticals, said, "Through our dedicated employees at MAP Pharmaceuticals, we have made tremendous progress to date with our lead product candidate, Levadex, enabling us to realize substantial value for our stockholders through this transaction. We are pleased that we and Allergan share similar values and a common vision in neuroscience that make for a strong cultural and scientific fit between our companies. We believe this acquisition by our partner Allergan will increase the potential for our product candidates to make a meaningful difference for patients we have worked so hard to serve."
In January 2011, Allergan entered into a collaboration agreement with MAP to co-promote Levadex, contingent upon potential regulatory authority approvals in the U.S. and Canada, to neurologists and pain specialists in these markets. In May 2011, MAP submitted an NDA for Levadex to the FDA. In October 2012, MAP resubmitted its NDA, which included additional data and provided responses to FDA comments. In November 2012, MAP announced its NDA resubmission for Levadex was accepted for filing by the FDA and classified as a complete Class 2 response, with a goal date of April 15, 2013, under PDUFA.
Allergan anticipates the transaction will be dilutive to 2013 earnings per share by approximately $0.07 and accretive to earnings per share by the second half of 2014. Allergan will provide 2013 guidance on its Feb. 5 earnings call.
Allergan expects to fund the transaction with a combination of cash on hand, cash equivalents and short-term borrowings under its commercial paper program. The transaction is not subject to any financing contingency.
MAP Pharmaceuticals focuses on developing and commercializing new therapies to address undermet patient needs in neurology. Allergan is a multi-specialty healthcare company established more than 60 years ago with a commitment to develop and deliver innovative and meaningful treatments. It employs approximately 10,800 and has global marketing and sales capabilities with a presence in more than 100 countries. Its medical specialties include eye care, neurosciences, medical aesthetics, medical dermatology, breast aesthetics, obesity intervention and urologics.