Corporate Banner
Satellite Banner
Pharma Outsourcing
Scientific Community
 
Become a Member | Sign in
Home>News>This Article
  News
Return

Cangene to be Acquired by Emergent BioSolutions for US$222 Million

Published: Friday, December 13, 2013
Last Updated: Friday, December 13, 2013
Bookmark and Share
Cangene shareholders to receive US$3.24 per share (C$3.44 per share) in cash.

Cangene Corporation has announced the signing of a definitive agreement under which Emergent BioSolutions ("Emergent") of Rockville, Maryland will acquire Cangene in an all-cash transaction valued at US$222 million (approximately C$236 million).

Under the terms of the agreement, which has been approved by the Boards of Directors of both companies, Cangene shareholders will receive US$3.24 per share (C$3.44 per share) in cash. The purchase price represents a premium of approximately 27% to Cangene's closing stock price of C$2.70 on December 10, 2013 and 45% to Cangene's 90-day volume weighted average stock price.

The acquisition will be implemented through a court-approved Plan of Arrangement under Canadian law and is subject to the approval of Cangene common shareholders, court approval and U.S. regulatory approvals and other customary closing conditions. The transaction is expected to be completed in the first calendar quarter of 2014.

John Sedor, President and CEO of Cangene, said: "This compelling transaction is a reflection of our employees' hard work and the quality and success of our business. Over the last few years, our team has transformed Cangene into an exceptional specialty biopharmaceutical company and biodefense leader, as demonstrated by our recent product approvals and biodefense contracts. We believe Cangene will now benefit from becoming part of Emergent, a leader in developing vaccines, as well as therapeutics for addressing critical diseases and disorders. The combination provides an excellent opportunity for our organization to continue its success, and it delivers immediate, significant value to Cangene shareholders."

Daniel Abdun-Nabi, President and CEO of Emergent, said: "Cangene is a terrific addition to Emergent. Our businesses are highly complementary. The addition of revenue-generating products and services across biodefense, commercial specialty biopharmaceuticals, and contract manufacturing significantly advances Emergent towards achievement of our growth plan. Once the transaction is closed, we look forward to working with the talented Cangene employees to realize the exciting potential of this combination."

Plan of Arrangement
The acquisition will be implemented through a Plan of Arrangement under Canadian law and is subject to a number of customary conditions including, but not limited to, the approval of at least 66 and 2/3% of the votes cast in person or by proxy by Cangene common shareholders at a special meeting of Cangene's common shareholders, as well as court and regulatory approvals.

The terms and conditions of the arrangement and additional details of the transaction will be summarized in Cangene's management information circular, which is expected to be filed and mailed to Cangene's shareholders in early January. A copy of the arrangement agreement will be filed on Cangene's SEDAR profile and will be available for viewing at www.sedar.com. The special meeting of Cangene security holders is scheduled to be held on February 12, 2014, subject to Court confirmation, with closing expected to occur in the first calendar quarter of 2014.

The arrangement agreement is subject to customary non-solicit provisions and Cangene's right to withdraw its recommendation of the transaction to shareholders in the event of a superior proposal. The agreement also contains certain termination rights, including termination fees that would apply in certain circumstances if the transaction is not consummated.

After receiving financial and legal advice, the members of the Board of Directors of Cangene voting on the resolution determined that the arrangement is in the best interests of Cangene, and resolved to support the arrangement and to recommend that its shareholders vote in favor of the arrangement. Raymond James Ltd. has provided an opinion to Cangene's Board of Directors that subject to the assumptions, limitations and qualifications set forth therein, the consideration to be received by holders of common shares pursuant to the arrangement is fair, from a financial point of view, to such holders. A copy of the Raymond James Ltd. opinion and other factors considered by the Cangene Board of Directors and other relevant background information will be included in the management information circular that will be mailed to Cangene common shareholders.

Shareholders collectively controlling approximately 61% of the outstanding common shares of Cangene have entered into support agreements to vote their shares in favor of the transaction with Emergent.


Further Information
Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 2,500+ scientific posters on ePosters
  • More than 3,800+ scientific videos on LabTube
  • 35 community eNewsletters


Sign In



Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into TechnologyNetworks.com you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

Cangene Announces Extension of VIGIV Biodefence Contract with U.S. Government
Contract with CDC for the supply of VIGIV extended by 18 months.
Friday, September 27, 2013
FDA Lifts Clinical Hold on Cangene's Hemophilia Compound IB1001
Cangene will begin new studies in adult and pediatric patients.
Tuesday, July 30, 2013
Cangene Announces Agreement to Acquire Late Stage Hemophilia B Product
Cangene will pay approximately $5.9 million upfront for IB1001.
Thursday, February 07, 2013
Cangene Reports First Quarter 2013 Results
Earnings of 7 Cents per share.
Monday, December 17, 2012
Scientific News
NIH Study Finds Calorie Restriction Lowers Some Risk Factors for Age-Related Diseases
Two-year trial did not produce expected metabolic changes, but influenced other life span markers.
Immunotherapy Agent Benefits Patients with Drug-Resistant Multiple Myeloma in First Human Trial
Daratumumab proved generally safe in patients, even at the highest doses.
NIH Study Shows No Benefit of Omega-3 Supplements for Cognitive Decline
Research was published in the Journal of the American Medical Association.
NIH Launches Human RSV Study
Study aims to understand infection in healthy adults to aid development of RSV medicines, vaccines.
Computerized Flexible Needles Prove Themselves in Biological Tissue
The advantage of the system is that you can avoid obstacles with the needles or critical tissues and that the system during the insertion of the needle in real time can adjust the path if, for example, the tissue deforms.
DARWIN 2 24-week Monotherapy Data in RA Confirm Previous Results
Safety profile in DARWIN 2 consistent with previous filgotinib RA studies.
Researchers Publish Landmark “Basket Study”
Researchers from Memorial Sloan Kettering Cancer Center (MSK) have announced results from the first published basket study, a new form of clinical trial design that explores responses to drugs based on the specific mutations in patients’ tumors rather than where their cancer originated.
Agricultural Intervention Improves HIV Outcomes
A multifaceted farming intervention can reduce food insecurity while improving HIV outcomes in patients in Kenya, according to a randomized, controlled trial led by researchers at UC San Francisco.
Overdose of Vitamin D in Teenagers May Lead to Increased Cholesterol Levels
Dosing obese teens with vitamin D shows no benefits for their heart health or diabetes risk, and could have the unintended consequences of increasing cholesterol and fat-storing triglycerides. These are the latest findings in a series of Mayo Clinic studies in childhood obesity.
Phase 2 Trials Underway for New Single Dose Malaria Treatment
The new drug, which prevents the malaria parasite from reproducing and spreading, is now undergoing Phase II clinical trials in humans.
Scroll Up
Scroll Down
SELECTBIO

Skyscraper Banner
Go to LabTube
Go to eposters
 
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
2,500+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
3,800+ scientific videos
Close
Premium CrownJOIN TECHNOLOGY NETWORKS PREMIUM FREE!