Javelin takes legal action against Hospira, calling for completion of agreed merger

The USA's Javelin Pharmaceuticals has filed a law suit against Hospira, and Discus Acquisition, a wholly owned subsidiary of Hospira formed to acquire Javelin, in the Delaware Court of Chancery. Javelin, seeks to compel Hospira and Discus to complete the agreed-upon merger pursuant to the definitive merger agreement among Javelin, Hospira and Discus dated April 17, 2010 (The Pharma Letters passim).

Javelin also has filed a motion seeking expedited proceedings in Delaware court to allow for an early trial at which it will seek an order requiring Hospira to fulfill its obligations under the merger agreement ' valuing the company at some $141 million - and under the loan agreement also dated April 17 that aimed to sustain Javelin until the merger completed. Javelin had entered the deal with Hospira, which was an improvement on an earlier offer from Myriad Pharmaceuticals of $96 million (TPL December 21, 2009).

Deal delayed due to Dyloject problems