Ciba-Geigy and Chiron Corp. Form Strategic Partnership

Ciba-Geigy Ltd. and Chiron Corp. have completed a strategic partnership, combining the companies' strengths to discover, develop, manufacture, and market biotechnology and healthcare products globally. The partnership was announced November 21, 1994, and was finalized on January 4, 1995. As part of the agreement, Ciba-Geigy acquired approximately 20 million shares of Chiron Corp., representing about 50% of the company's outstanding stock.

Key Takeaways:

Ciba-Geigy acquired approximately 20 million shares of Chiron Corp., representing about 50% of the company's outstanding stock, for $117 per share.
The partnership will leverage the companies' complementary strengths to discover, develop, manufacture, and market biotechnology and healthcare products globally.
The center for excellence for the biotechnology partnership will be Chiron's existing operations headquartered in Emeryville, California.
Ciba-Geigy and Chiron Corp. will have a joint board of 11 members, with two new members added to the Chiron Board: Pierre Douaze and Francois L'Eplattenier, both from Ciba-Geigy.
Dr. Rutter will join Ciba-Geigy's board pending approval during the 1995 Ciba Annual General Meeting.
Chiron Corp. has a history as a research leader and currently has more products in clinical trials than any other biotechnology company.

Statistics:

Ciba-Geigy's 1993 sales totaled $22.6 billion (Sfr.22,647 million).
Ciba's Pharmaceuticals Division, with 1993 global sales of $6.6 billion (Sfr.6,599 million), researches and develops therapies and medicines to cure or treat unmet medical needs.
Ciba-Geigy spent 1993 on research and development.
Chiron Corp. has around 40 million common shares outstanding, with Ciba-Geigy owning approximately 20 million.
31,237,023 shares of Chiron common stock were tendered in the offer.

Sources:

"Ciba-Geigy and Chiron Corp. Form Strategic Partnership" - Business Wire, January 4, 1995
Ciba-Geigy Ltd. website, 1994
Chiron Corp. website, 1994