By Lisa Kerner
Charlotte, N.C., July 8 - Eli Lilly and Co. agreed to acquire SGX Pharmaceuticals, Inc. for $3.00 per share in an all-cash transaction valued at approximately $64 million.
The acquisition will give Lilly, an Indianapolis-based pharmaceutical company, access to FAST, SGX's fragment-based, protein structure guided drug discovery technology as well as to a portfolio of pre-clinical oncology compounds, a company news release said.
Both companies' boards of directors unanimously approved the transaction, which is expected to close in the second half of 2008.
A $2 million termination fee is included in the agreement, according to a form 8-K filed with the Securities and Exchange Commission.
"After a successful collaboration over the past several years, we are excited to bring the scientific and technological expertise of SGX into Lilly's research organization, while at the same time expanding our presence in the San Diego area," Steven M. Paul, M.D., Lilly executive vice president, science and technology, said in the release.
"We believe that this merger provides an excellent opportunity for the potential of SGX's platform and pipeline to be realized, while simultaneously providing our shareholders with attractive financial terms," SGX chief executive officer Mike Grey added.
SGX is a San Diego biotechnology company.
| Acquirer: | Eli Lilly and Co.
|
| Target: | SGX Pharmaceuticals, Inc.
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| Announcement date: | July 8
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| Transaction total: | $64 million
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| Price per share: | $3.00
|
| Termination fee: | $2 million
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| Expected closing: | Second half of 2008
|
| Stock price of target: | Nasdaq: SGXP: $1.43 on July 7
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