Under the terms of the agreement, Millennium will commence within ten days a cash tender offer to acquire the shares of AnorMed stock at a price of $12 per outstanding share. Genzyme had offered shares of $8.55 in August that were deemed too low by AnorMed.
Millennium will also acquire oncology product Mozobil as part of the agreement.
Mozobil improves the ability to collect stem cells for transplant. Stem-cell transplants offer a potential cure for patients with certain hematological malignancies.
Assuming the acquisition is completed and Mozobil is approved, the product would be sold by Millennium's oncology sales department.
“Mozobil is an excellent strategic fit with Millennium's focus in hematology-oncology,” said Deborah Dunsire, president and CEO of Millennium.
However, there is still an opportunity for additional higher offers to be presented to AnorMed and they could potentially be higher if upcoming trials of Mozobil provide promising results. The current agreement with Millennium provides the AnorMed board with the ability to withdraw, modify or change its support.
Millennium still has the right to match any such superior proposal made by another bidder. If AnorMed's board accepts a superior bid, Millennium will be entitled to a payment of $19.5 million from AnorMed.