Hospira Bids To Acquire Javelin

Javelin Pharmaceuticals, a specialty pharma in the pain management sphere, has received an acquisition bid from Discus, a subsidiary of Hospira, leading Javelin to cancel its previous merger agreement with Myriad Pharmaceuticals. The move triggers a $4.4 million termination fee, which Hospira will pay.

Hospira will pay $2.20 per share of Javelin, a 60% premium from Javelin’s previous share price, for a total of $141 million for all outstanding shares. Javelin will also be able to borrow as much as $4.5 million from Hospira to fund operations until the end of the merger, and $8.3 million to repay a similar loan that was taken out when the Myriad merger was signed.

According to a statement from Javlin’s chief executive officer, Martin Driscoll, Javelin is required to negotiate in good faith with Myriad for a period of five business days. If MPI does not “favorably adjust the terms of its offer,” then Javelin will follow through with the Hospira bid.