Celltech merges with struggling Medeva to create pounds 1.3bn group
Friday 12 November 1999
The deal ends months of speculation surrounding the independence of Medeva. Yesterday it confirmed that talks between the company and its rival, Shire Pharmaceuticals, collapsed in July, and subsequent discussions with Elan, the Irish pharmaceutical group, were aborted in September. Medeva is believed to have made the first move in yesterday's deal a month ago.
Celltech, which is currently loss-making, said the deal gave it a fine marketing partner for its pipeline of products, the first of which were due on the market next year. Dr Peter Fellner, who remains as chief executive of the group, said: "This is a defining moment for us. The Celltech-Chiroscience deal was about gaining critical mass in research and development. What we are trying to do here is turn ourselves into a biopharmaceuticals company in the top tier."
Dr Bill Bogie, chief executive of Medeva, will join the group as a non- executive. He is to receive compensation thought to exceed pounds 0.5m for termination of his 18-month contract. He declined to comment yesterday, but a spokesman for Medeva said: "It's Celltech's day."
Dr Fellner added the group planned to dispose of its non-core activities, which would likely include Medeva's manufacturing facilities. Both Medeva's hepagene hepatitis drug, which has obtained disappointing results in trials, and its methylphenidate hyperactivity treatment would be core at least until the publication of further clinical trial data.
Medeva's operations are to be renamed Celltech Medeva and will be headed by Medeva's current finance director, Gary Watts. Celltech is offering 34 shares for every 100 Medeva shares, valuing Medeva at pounds 563m on Wednesday's closing price and representing a 16 per cent premium to its share price before the bid talks were revealed last month. Celltech shares closed down 7.5p at 477.5p yesterday. Medeva shares closed up 3p at 156.5p.
- 1 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 A politically correct lefty goes to see Top Gear live – you'll probably believe what happened next
- 3 Young Preston fan has play-off hero Jermaine Beckford's shirt stolen from him at Wembley - which then appears for sale on Gumtree
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
A nation of inequality: How the UK is failing to feed its most vulnerable people
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...