Glaxo Completes Tender Offer for Affymax

Strategic Insights -

Glaxo, a major pharmaceutical company, has successfully concluded its tender offer for all outstanding common shares of Affymax, a biotechnology company specializing in drug discovery and combinatorial chemistry technologies. The offer, initiated on February 1, 1995, resulted in approximately 98.8% of Affymax's shares being tendered, representing a significant majority of the company's outstanding shares. As of March 1, 1995, when the offer expired, a total of 17,964,771 shares had been tendered, with an aggregate consideration of $538,943,130 being paid to the shareholders.

Key Takeaways:

  • The tender offer was initiated by Glaxo Venture Limited, a wholly-owned subsidiary of Glaxo, at a price of $30 per share.
  • The Management Board of Affymax unanimously approved the offer and recommended that shareholders accept.
  • The merger will enable Glaxo to integrate Affymax's research talents and technologies, leveraging their drug discovery programs.
  • Dr. Alejandro Zaffaroni, Chief Executive Officer of Affymax, expressed enthusiasm about joining the Glaxo organization and applying their technologies to Glaxo's drug discovery efforts.
  • Glaxo, as a major pharmaceutical company, will gain access to Affymax's proprietary technologies and expertise in drug discovery and combinatorial chemistry.
  • Affymax's scientists, based in California, have created a broad portfolio of proprietary technologies that enable the simultaneous synthesis and screening of millions of novel compounds.
  • Glaxo conducts research into and develops prescription pharmaceutical products, with manufacturing facilities in 32 countries and research capabilities in eight countries.
  • The company has over 45,000 employees and is one of the world's major pharmaceutical companies.

Statistics:

  • 17,964,771 shares were tendered in the offer, representing approximately 98.8% of Affymax's outstanding shares.
  • The tender offer resulted in a total consideration of $538,943,130 being paid to the shareholders.
  • The offer price was $30 per share.
  • Glaxo has manufacturing facilities in 32 countries and research capabilities in eight countries.
  • The company has over 45,000 employees.

Sources:

  • PR Newswire, "Affymax Announces Tender Offer Completion" (March 2, 1995)
  • Affymax, "About Us"
  • Glaxo, "About Glaxo"