Adding to what has been a period heavy with merger activity within the pharmaceutical sector, biotech firm Gilead Sciences will pay $1.4 billion to acquire CV Therapeutics, according to the Wall Street Journal. Having deferred an offer from Japanese company Astellas Pharma, CV chief executive Louis Lange said he was “very pleased” with the Gilead deal.
Gilead’s $1.4 billion offer comes to $20/share for CV investors, a marked improvement over Astellas’s offer of $16/share in January. CV closed yesterday at $16/share.
“The acquisition of CV Therapeutics represents a unique opportunity to complement and strengthen our growing cardiovascular portfolio,” Gilead CEO John C. Martin said in a prepared statement. CV’s flagship drug is Ranexa, a treatment for chronic angina. Gilead is a maker of HIV drugs, which have sold well in the face of the recession.
The merger marks the third so far this year in a pharmaceutical industry that is rapidly consolidating. Following Pfizer’s decision to purchase Wyeth in January, Merck announced just last week its intentions to purchase rival Schering-Plough.