Allergan to acquire MAP Pharmaceuticals in $958 million deal

US drugmaker Allergan (NYSE: AGN) has entered into a definitive merger agreement to acquire 100% of the shares of fellow USA-based MAP Pharmaceuticals (Nasdaq: MAPP) for a price of $25.00 per share, a 60% premium over MAP’s closing stock price on the Nasdaq Stock Market of $15.58 on January 22, and represents a total equity value of around $958 million, on a fully-diluted basis.

MAP Pharma is focused on developing and commercializing new therapies in neurology, including Levadex (dihydroergotamine), an orally inhaled drug for the potential acute treatment of migraine in adults to which Allergan already has rights under an accord that could have cost it as much as $157 million (The Pharma Letter February 2, 2011). Levadex is currently under review with the US Food and Drug Administration.
The transaction, which has been unanimously approved by the boards of directors of both companies, will be accomplished pursuant to a cash tender offer followed by a second step merger. The acquisition is expected to close late in the first or second quarter of 2013.

Acquisition enhances Allergan leadership position in neurology and migraine