* Hospira sees synergies with Javelin pipeline pain drug
* Hospira shares fall 2.4 percent; Javelin up slightly
CHICAGO, April 19 (Reuters) - Hospira Inc HSP.N has struck a deal to buy specialty drugmaker Javelin Pharmaceuticals Inc JAV.A for $145 million in cash to broaden its portfolio of pain management offerings, the company said on Monday.
Cambridge, Massachusetts-based Javelin said last week that the $2.20 per share offer from Hospira topped an earlier bid from Myriad Pharmaceuticals Inc MYRX.O. That prompted Javelin to terminate a merger agreement with Myriad.
Hospira, a maker of hospital products, medical devices and injectable drugs, said Javelin’s product candidate Dyloject, a post-surgery pain management drug awaiting U.S. Food and Drug Administration approval, and Hospira’s sedation drug Precedex are both marketed to anesthesiologists, enabling Hospira to leverage its sales force to promote Dyloject.
The companies also entered into a loan facility. Javelin may borrow up to $4.5 million to fund operations before closing the merger, about $8.3 million to repay principal and interest from a similar financing arrangement with Myriad, and $4.4 million to pay fees and expenses arising from the termination of its merger agreement with Myriad.
Shares of Lake Forest, Illinois-based Hospira, which on Friday said it received a warning letter from FDA after an inspection of two manufacturing plants in North Carolina, fell 2.4 percent to $55.73. Shares of Javelin rose less than 1 percent to $2.18. (Reporting by Susan Kelly; Editing by Lisa Von Ahn)
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