MGI Pharma completes Guilford acquisition, plans to tender for convertibles

By E. Janene Geiss

Philadelphia, Oct. 3 - MGI Pharma, Inc. completed Monday the acquisition of Guilford Pharmaceuticals Inc., an oncology and acute care-focused biopharmaceutical company. The combined company will market Aloxi, an injection treatment for chemotherapy-induced nausea and vomiting, and a chemotherapy agent called the Gliadel Wafer.

MGI Pharma said that during the fourth quarter it intends to offer to repurchase Guilford's convertible debt, totaling $69.4 million as of June 30.

Under the terms of the acquisition, all shares of Guilford were exchanged for 5.3 million shares of MGI Pharma stock, plus $53.9 million in cash, or $3.75 per Guilford share, a figure based on MGI Pharma's five-day average stock price ending Sept. 25. The total amount is worth $179.6 million.

As part of the deal, MGI Pharma has extinguished an approximately $60 million obligation related to a revenue interest agreement between Guilford and Paul Royalty Fund.

Including the impact of the Guilford transaction, MGI Pharma anticipates total revenue of about $280 million to $290 million for the year ending Dec. 31.

MGI Pharma is a Minneapolis-based oncology and acute care-focused biopharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.