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Schering Berlin Inc. Acquires Diatide Inc.

Strategic Insights

— 1 min read

Schering Berlin Inc., a wholly-owned subsidiary of Schering AG, Germany, and Diatide Inc., a New Hampshire-based pharmaceutical company, have announced that Schering Berlin Inc. will acquire Diatide for a cash payment of $9.50 per share of common stock. This acquisition is part of Schering Berlin Inc.'s global strategy to expand its business focus to include radiopharmaceuticals. Diatide's product portfolio, R&D pipeline, and expertise in developing radiopharmaceuticals will complement Schering Berlin Inc.'s business interests in Diagnostic Imaging and Therapeutics.

Key Takeaways:

  • Schering Berlin Inc. will acquire Diatide Inc. for a cash payment of $9.50 per share of common stock.
  • The acquisition is part of Schering Berlin Inc.'s global strategy to widen its business focus to include radiopharmaceuticals.
  • Diatide's product portfolio includes novel imaging products and tumor and vascular therapeutics, such as AcuTect and NeoTect, which were approved by the FDA in 1998 and 1999, respectively.
  • Diatide's Theratides, a line of therapeutics for cancer treatment, consisting of targeting peptides labeled with a therapeutic beta-emitting radioisotope, are also part of the acquired assets.
  • Schering Berlin Inc. will gain access to Diatide's expertise in radiolabeling chemistry, peptide engineering, and molecular biology.
  • The acquisition is expected to contribute to Schering Berlin Inc.'s goal of becoming a leading global provider of innovative radiopharmaceuticals.
  • Dr. Hubertus Erlen, Chairman of Schering Berlin Inc., stated that the combination of Diatide's product portfolio and expertise will make a strong contribution to Schering Berlin Inc.'s goal.
  • Dr. Richard T. Dean, CEO of Diatide, believes that the merger with Schering Berlin Inc. will facilitate the successful development and positioning of Diatide's products.
  • Schering Berlin Inc. has five research-driven subsidiaries, including Berlex Laboratories, Inc., Medrad Inc., AgrEvo USA Company, Berlichem Inc., and Schering Berlin Venture Corporation.

Statistics:

  • The cash payment for the acquisition of Diatide Inc. is $9.50 per share of common stock.
  • Diatide has two approved products, AcuTect (launched in 1998) and NeoTect (approved by FDA on August 3, 1999).
  • Diatide has a pipeline of novel imaging products and tumor and vascular therapeutics.
  • Schering Berlin Inc. has six subsidiaries, including BXA Acquisition Company.

Sources:

  • Schering Berlin Inc. press release, September 20, 1999
  • Diatide Inc. press release, September 20, 1999
  • FDA approval of NeoTect, August 3, 1999

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