Briefs: Merz Pharma pulls out of Obagi bid; Aubagio approved in Argentina

8 April 2013

German family-owned Merz Pharma says that it has withdrawn its non-binding proposal to acquire all of the outstanding common stock of Obagi Medical Products (Nasdaq-GS: OMPI) for $22 per share in cash, following Valeant Pharmaceuticals (TSX: VRX) recent amended, increased offer of $24 per share for the company (The Pharma Letter April 3). This clearly comes as a disappointment to investors, who had expected an bidding war to continue for Obagi.

"Obagi was an opportunity worth pursuing given its complementary fit with Merz's portfolio of injectables," said Merz chief executive Philip Burchard. "However, Merz is a disciplined buyer and at this level the economics of such a transaction do not meet our requirements. We look forward to exploring other acquisition opportunities that fit our strategy. In addition, we will build on Merz's strong position in the markets we serve and continue to invest in our own R&D," he added.

Argentina’s ANMAT clears Sanofi/Genzyme’s Aubagio

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