Novexel has signed a definitive agreement whereby the company shall be acquired by AstraZeneca for a total cash consideration of up to $505m. The transaction is expected to close in the first quarter of 2010, subject to certain customary conditions.
As per the agreement, AstraZeneca is expected to acquire 100% of Novexel’s shares for $350m in cash payable upon completion and will pay up to an additional $75m 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 $80m. The 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.
Iain Buchanan, CEO of Novexel, said: “Today’s announcement highlights the progress that Novexel has made since it was spun out of Aventis Pharma in December 2004 and demonstrates the added value of placing promising assets in an entrepreneurial structure in France. Over the last five years we have made the appropriate decisions to advance the pipeline and I would like to pay tribute to all Novexel employees whose collective efforts have made this transaction with AstraZeneca possible.
“I am confident that the acquired assets will receive continued investment from both AstraZeneca and Forest and will have the possibility to play an important therapeutic role to combat resistant organisms in the hospital.”