AstraZeneca buys heart firm Omthera Pharmaceuticals for up to $443 m

AstraZeneca is to buy Omthera Pharmaceuticals for as much as $443 million to build up its cardiovascular drug business,a priority area for Britains second-biggest drugmaker.

The acquisition of the U.S.-based specialist in fish oil-derived medicine underscores a drive by new Chief Executive Pascal Soriot to revive AstraZenecas fortunes through a series of bolt-on deals.

It is his second purchase in the cardiovascular field,following the acquisition last month of AlphaCore Pharma,a small early-stage U.S. biotechnology company.

STOCK MARKETS LINKS

* BSE Sensex

* NSE Nifty

* Top Gainers/Top Losers

* Top Value

* Top Quantity

* Best Performing Mutual Funds

Story continues below this ad

The latest transaction pitches AstraZeneca into competition with rivals including GlaxoSmithKline that already sell heart-friendly fish oil drugs.

Omtheras leading drug has already completed final-stage clinical tests and has the potential to be combined with AstraZenecas blockbuster cholesterol fighter Crestor. Helvea analyst Odile Rundquist said the deal was a good move as it perfectly complements AstraZenecas cardiovascular portfolio.

AstraZenecas sales and profits are falling as older medicines lose patent protection and the company badly needs new products to replace former big sellers like the antipsychotic Seroquel,which lost exclusivity last year.

AstraZeneca said on Tuesday it had entered into a definitive agreement to buy Omthera for $12.70 per share,or approximately $323 million,a premium of 88 percent to Omtheras closing price on Friday.

Story continues below this ad

In addition,Omthera shareholders will get contingent value rights (CVRs) of up to approximately $4.70 per share,or $120 million in total,depending on the success of Omtheras experimental drug Epanova,for treating patients with very high triglycerides,a type of blood fat that is bad for the heart.

CVRs are being used increasingly in deals in the pharmaceutical and biotechnology market to bridge differing expectations surrounding new drugs whose final sales are uncertain.