October 18, 2007 / 5:36 AM / 12 years ago

Galenica says to offer $915 million for Aspreva

ZURICH (Reuters) - Swiss healthcare products supplier and drugmaker Galenica GALN.S plans to buy Canada’s Aspreva Pharmaceuticals Corporation, Galenica said on Thursday.

The purchase price offered for Aspreva was $26 per share, amounting to a total of $915 million, Galenica also said in a statement.

The price offered corresponds with a premium of 34 percent compared to Aspreva’s average share price over the last 90 days.

Aspreva Pharmaceuticals specializes in the research and commercialization of new therapeutic indications for already registered drugs and works together with Swiss drugmaker Roche ROG.VX.

Galenica said the acquisition was fully financed.

“Aspreva’s cash flow will enable Galenica to repay the loan facility required to finance the takeover completely within a few years,” the Swiss company said.

“On a cash EPS basis Aspreva’s acquisition represents an over 80 percent accretion for Galenica Group in the first year,” the company said.

“The acquisition will have a positive impact on Galenica Group’s net profit in the very first year,” the company said.

The acquisition will help Galenica to accelerate the further development and market launch of its products, particularly for next generation IV iron preparation Ferinject outside the therapeutic area of nephrology, Galenica said.

Shares in Galenica have risen some 38 percent so far this year. Trading will resume at 3:00 a.m. EDT.

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