Sandoz Acquires Genetic Therapy, Inc. in Merger Agreement

Strategic Insights -

Sandoz has entered into a definitive merger agreement with Genetic Therapy, Inc. (Nasdaq: GTII) to acquire the gene therapy research and development organization in a cash tender offer at USD 21.00 per share. The acquisition will enable Sandoz to advance its position in gene therapy technology and solidify its commitment to innovation in pharmaceutical research and development. Genetic Therapy, Inc. has made significant strides in gene therapy research, with ongoing projects in cancer, HIV, cystic fibrosis, Gaucher disease, and hemophilia.

Key Takeaways:

  • Sandoz will acquire Genetic Therapy, Inc. in a cash tender offer at USD 21.00 per share, representing a premium of 38% over the company's Friday closing price of USD 15.25/share.
  • The acquisition is valued at USD 295 million, including the cashing out of options and warrants vested at the time of closing.
  • Sandoz has held a minority stake (3.6 percent of shares outstanding) in Genetic Therapy, Inc. since 1991.
  • The merger follows a successful strategic alliance between Sandoz Pharma and Genetic Therapy, Inc., with ongoing projects in Phase I/II clinical trials in the U.S. and Europe.
  • A broad U.S. patent was granted in March 1995, covering ex vivo gene therapy treatments, exclusively licensed to Genetic Therapy, Inc.
  • Jim Barrett, PhD, will continue to lead Genetic Therapy, Inc. after the acquisition.
  • The acquisition is the latest in a series of strategic moves for Sandoz, aimed at maximizing growth and profitability.

Statistics:

  • USD 295 million: aggregate purchase price for the shares, including the cashing out of options and warrants vested at the time of closing.
  • 12,593,352: number of common shares subjected to the cash tender offer.
  • 38%: premium over Genetic Therapy, Inc.'s Friday closing price of USD 15.25/share.
  • 21.00: price per share in the cash tender offer.
  • 1995: year in which a broad U.S. patent was granted, covering ex vivo gene therapy treatments.
  • 41-61-324-9001: phone number of Dagobert Cahannes, Sandoz.
  • 212-593-6497: phone number of Kathy Bloomgarden, Ruder Finn.

Sources:

  • Financial wire services, July 10, 1995.
  • Sandoz, 41-61-324-9001 or Kathy Bloomgarden of Ruder Finn, 212-593-6497.