Pharmaceutical giant Merck & Co. said Monday it found an agreement with Idenix Pharmaceuticals in deal under which Merck will pay $3.85 billion for Idinex.
A deal for $24.50 a share has been approved by the boards of directors of both companies.
"Idenix has established a promising portfolio of hepatitis C candidates based on its expertise in nucleoside/nucleotide chemistry and prodrug technologies," said Dr. Roger Perlmutter, president, Merck Research Laboratories.
Merck share was down 0.43% in premarket while Idenix climbed 4.03%.
"Idenix's investigational hepatitis C candidates complement our promising therapies in development and will help advance our work to develop a highly effective, once-daily, all oral, ribavirin-free, pan-genotypic regimen that has a duration of treatment as short as possible for millions of patients in need around the world."
Idenix is a biopharmaceutical company involved in the discovery and development of medicines for the treatment of human viral diseases, and whose primary goal is on the development of next-generation oral antiviral therapeutics in order to treat hepatitis C virus infection.
Under the terms of the deal, Merck will, through a subsidiary initiate a tender offer to acquire all outstanding shares of Idenix Pharmaceuticals, Inc.
The closing of the tender offer will be subject to certain conditions, including the tender of shares representing at least a majority of the total number of Idenix's outstanding shares (assuming the exercise of all options), the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.
After the completion of the tender offer, Merck will receive all remaining shares through a second-step merger. The transaction is expected to be close in the third quarter of 2014.
Original headline: Merck & Co to acquire Idinex Pharmaceuticals for $3.85 billion
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