Breaking News Bar
updated: 5/28/2013 9:58 AM

AstraZeneca to pay about $260M for Omthera Pharma

Success - Article sent! close
Associated Press

British drugmaker AstraZeneca PLC plans to spend about $260 million on Omthera Pharmaceuticals Inc., a specialty drug developer with only 14 employees but has a potential treatment for patients who have high levels of fats called triglycerides in their blood.

AstraZeneca said Tuesday it will pay $12.70 for each share of Omthera, which priced an initial public offering last month at $8 per share. The offered price represents an 87 percent premium to its closing price Friday of $6.77.

Order Reprint Print Article
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

The price of Omthera shares nearly doubled, climbing $6.48 to $13.25, in Tuesday morning trading.

AstraZeneca said the deal totals about $323 million when counting Omthera's cash balances.

Omthera shareholders also could receive additional payments totaling about $120 million if the potential treatment called Epanova reaches development milestones. Those contingent value rights add up to about $4.70 per share

Omthera, based in Princeton, N.J., has completed late-stage testing on Epanova, a fish oil-based treatment. It plans to submit the drug, which is a coated, soft gelatin capsule, to U.S. regulators for approval by the middle of this year.

Its shares closed at $7.43 on April 11, the stock's first day of trading, and had remained below the IPO price until Tuesday morning.

Omthera also said Tuesday its first quarter loss narrowed to $7.3 million, or $3.08 per share, in the quarter that ended March 31. That counts preferred dividend payments and compares to a loss of about $10.1 million, or $6.18 per share, in last year's quarter. The company said its research and development expenses fell to $357,000 compared to about $8 million due to the completion of late-stage research on Epanova.

The drug developer listed no revenue in a brief statement on the quarter.

AstraZeneca said last month that its first-quarter profit fell 31 percent as generic competition for bipolar medication Seroquel IR, high blood pressure drug Atacand and cholesterol drug Crestor drove revenue down.

U.S.-traded shares of AstraZeneca rose $1.03, or 2 percent, to $53.20 in morning trading Tuesday.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.