Celltech merges with struggling Medeva to create pounds 1.3bn group

CELLTECH CHIROSCIENCE, the biopharmaceutical company, yesterday pulled off its second takeover in five months with an agreed pounds 563m bid for Medeva, the struggling pharmaceuticals group. The enlarged company will be called Celltech Group.

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.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee