Shares of Kosan Biosciences Inc. (NASDAQ: KOSN), a biotechnology company and drug developer that focuses on the genetic manipulation of polyketides, which are used in antibiotics and anticancer drugs, more than tripled recently on the announcement of the signing of a definitive merger agreement with Bristol-Myers Squibb. Under the terms of the agreement, Bristol-Myers Squibb will acquire Kosan for $5.50 per share in cash.
Bristol-Myers Squibb will begin purchasing all of the outstanding shares of Kosan with a net aggregate purchase price of approximately $190 million. This purchase agreement has been unanimously approved by the boards of directors of both companies. Fully committed to the development and commercialization of its pre-clinical portfolio, Kosan Biosciences believes that this acquisition represents a timely and unique opportunity to place the company’s clinical and pre-clinical programs and technology assets into the hands of a world-class oncology company.
Through this acquisition, Kosan Biosciences has granted to Bristol-Myers Squibb an exclusive worldwide license to its epothilone compounds and related intellectual property. Under the license agreement, Kosan will receive an initial payment of $25 million from Bristol-Myers Squibb and is entitled to milestone payments and royalty payments on net sales of epothilone product candidates.
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