Astellas Pharma vs. OSI Pharmaceuticals - Biggest Battles in Biopharma

Astellas Pharma vs. OSI Pharmaceuticals

Earlier this year, Astellas purchased OSI for $4 billion. And while things seem to be going smoothly now, there was controversy at the beginning.

Astellas initially made a $3.5 billion hostile bid to acquire OSI in March, but OSI wasn't impressed. "After carefully analyzing and considering Astellas' offer, the Board has unanimously concluded that the offer does not fully reflect OSI's fundamental, intrinsic value," OSI Chair Robert Ingram said in a statement.  "We believe that OSI is a unique asset--the only profitable, mid-cap biotech company with a growing, high quality and fully integrated oncology franchise and a strong diabetes and obesity franchise which also has a proven track-record of success. "

Astellas filed a suit, claiming that the OSI's decision to reject its $3.5 billion offer wasn't in its shareholders' interest. It also fought back by nominating a slate of independent directors who would give the company a much warmer reception. OSI initially scoffed, adding that the nominees' "only mandate is to support Astellas in acquiring OSI at an inadequate price." But a larger offer seemed to change the company's mind, as the two drugmakers reached an agreement in May. The deal represents the first major acquisition by Astellas, the Wall Street Journal noted.

Astellas Pharma vs. OSI Pharmaceuticals - Biggest Battles in Biopharma
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