Astex Thera to merge into SuperGen in cash and stock deal

USA-based cancer drug developer  SuperGen (Nasdaq: SUPG) and privately-held UK biotech firm Astex Therapeutics have entered into a definitive agreement to merge the two companies, subject to customary closing conditions, including regulatory and shareholder approvals.

Under the terms of the accord, SuperGen plans to purchase Astex, paying the latter’s shareholders $25 million in cash, plus shares in SuperGen common stock representing 35% of the total post closing shares outstanding. Subsequently, SuperGen plans to pay deferred consideration in the amount of $30 million, to be paid in stock or cash at the discretion of the combined entity, over a period of 30 months. The proposed transaction is expected to close in July 2011.

The combined entity, to be named Astex Pharmaceuticals and listed on the Nasdaq under the ASTTX symbol, is expected to create a global leader in innovative oncology drug discovery, development and commercialization with $120 million in cash and cash equivalents forecasted post deal closure.