Astellas Pharma won't give up on OSI Pharmaceuticals (NQ: OSIP). The Japanese pharma company, which launched its hostile bid in March, has extended its tender offer for $52 per share for all currently outstanding shares of common stock of OSI to May 17. The previous offer had been set to close April 23 at midnight.
OSI says Astellas' protracted wooing played a primary role in the decline of its first quarter net income when compared with the same quarter 2009 ($4.7 million versus $16.5 million last year). The decline was due primarily to $11 million in costs recorded in connection with Astellas' offer and an $8 million non-operating impairment on the company's investment holding in AVEO Pharmaceuticals following that firm's IPO, according to an OSI statement.
"Clearly our first quarter results have been impacted both financially and strategically by the unsolicited $52 per share offer from Astellas," Chief Executive Colin Goddard told analysts on a conference call, as reporter by Reuters.
However, total revenues increased 14 percent to $107 million versus the same period 2009. And worldwide net sales of Tarceva (erlotinib)-- as reported to by its collaborator Roche--were approximately $308 million, representing a 10 percent increase in sales over the first quarter of 2009, according to a company earnings statement.
OSI shares rose to $58.90 in extended trading from their Nasdaq close at $58.66, according to Reuters.
- see OSI's earnings release
- see Astellas' statement
- read Reuters' coverage