Specialty pharmaceutical company EUSA Pharma of Oxford, U.K., has entered into a definitive agreement to acquire biopharmaceutical firm Cytogen for $22.6 million.
Under the terms of the proposed cash transaction, Cytogen shareholders will receive 62¢ per share of stock. Cytogen's board has given its blessing to the agreement and will recommend its approval to shareholders.
Upon completion of the transaction, EUSA intends to apply to delist all of the company's shares from the Nasdaq stock exchange.
Cytogen's revenues totaled $20.2 million in 2007. The Princeton, NJ-based company reporting a net loss of $25.7 million last year.
EUSA Pharma specializes in licensing, developing, and marketing late-stage oncology, pain control, and critical care products. The company currently has six products on the market, including the antibiotic surgical implant Collatamp G, Erwinase, and Kidrolase for the treatment of acute lymphoblastic leukemia. Rapydan is a rapid-onset anesthetic patch, which recently received European marketing approval.
EUSA Pharma also has raised more than $50 million in investment fundraising. The investment round, which is conditional on the completion of the Cytogen acquisition, is led by German venture capital firm TVM Capital and supported by EUSA's existing investors.
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Cytogen to raise $10 million, July 2, 2007
Cytogen hires new executive, June 11, 2007
Cytogen sales grow, loss narrows, May 11, 2007
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