PHARMACY

Respironics to merge with Philips in $5.1 billion deal

BY Michael Johnsen

MURRYSVILLE, Pa. Respironics on Friday announced a definitive merger agreement with Royal Philips Electronics, which will commence a tender offer to acquire all of the outstanding shares of Respironics for $66 per share, or a total purchase price of approximately $5.1 billion.

The offer price represents a premium of approximately 31 percent over Respironics’ average closing share price for the thirty trading days ended Dec. 20.

Respironics is a global leader in the treatment of Obstructive Sleep Apnea, a sleep disorder characterized by the repeated cessation of breathing during sleep. Additionally, the company has a leading position in noninvasive ventilation and has recently introduced new home oxygen technologies to serve the needs of respiratory impaired patients in the home.

The remainder of the company’s business is focused on the hospital channel and includes noninvasive and invasive ventilation, respiratory monitoring, neonatal products and respiratory drug delivery technologies for the treatment of respiratory diseases.

Upon closing, Respironics will become the headquarters for Philips Home Healthcare Solutions group within Philips Healthcare, and Respironics’ senior operating leadership are expected to remain with the organization and will continue to lead and manage the business.

“The transaction we are announcing today will deliver superior and certain value to Respironics’ shareholders,” stated John Miclot, president and chief executive officer of Respironics. “The combination of Respironics and Philips will allow us to continue to provide exceptional products and services to our customers and allow Respironics to expand its leadership in the global sleep and respiratory markets.”

Upon completion of this acquisition, Respironics will become the centerpiece of Home Healthcare Solutions, which will form part of Philips Healthcare as of Jan. 1.

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PHARMACY

BioSante makes milestone payment of $875,000 to Antrares for Elestrin

BY Drew Buono

EWING, N.J. Antares Pharma has received an additional payment of $875,000 from BioSante Pharmaceuticals in relation to a marketing agreement with Bradley Pharmaceuticals for the drug Elestrin.

Elestrin is a low dose transdermal estradiol therapy that is used for the treatment of hot flashes in menopausal women. Antares allowed BioSante to use its advanced transdermal delivery gel system for the drug. Additional sales based milestone payments could bring the deals total value to more than $13 million, not including royalties based on third party sales.

“We look forward to continued marketing progress with Elestrin in 2008. The December 2006 FDA approval of this product has validated our ATD gel system and that has been a significant milestone for Antares and our potential pipeline products including Anturol—our proprietary ATD gel based overactive bladder product—currently in pivotal trials,” said Jack Stover, president and chief executive officer of Antares Pharma.

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GSK, Santaris ink deal worth a potential $700 million

BY Drew Buono

LONDON GlaxoSmithKline has signed a deal with the biotech company Santaris Pharma to develop new antiviral medicine, in a deal that could be worth more than $700 million, according to Reuters. The deal involves drug candidates discovered and developed under the agreement in up to four different viral disease programs.

As part of the deal, Santaris will receive an upfront payment of $3 million for the first antiviral program and an equity investment of $5 million. The deal could be worth more than $700 million based on upfront payments and development and regulatory milestone payments, depending on the success on early-stage research in RNA antagonist compounds.

Santaris will also get high single- to double-digit percentage royalties on worldwide sales of marketed products. GSK will have the option to develop drug candidates in up to four different viral disease programs. It also has an option to include as an additional program Santaris’ pre-clinical hepatitis C compound SPC3649.

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