Merck & Co makes $430 million bid for Inspire, getting hands on eye drug Azasite

US drug giant Merck & Co (NYSE: MRK) has entered into a definitive agreement under which Merck will to acquire specialty pharmaceutical company Inspire Pharmaceuticals (Nasdaq: ISPH), which is focused on developing and commercializing ophthalmic products, in a cash deal valuing the latter at around $430 million.

Under the terms of the deal, Merck, through a subsidiary, will commence a tender offer for all outstanding common stock of Inspire at a price of $5.00 per share in cash, a 26% premium to the closing price of Inspire’s common stock on April 4, 2011.

The transaction has been unanimously approved by the boards of directors of both companies and Inspire’s board recommended that shareholders tender their shares pursuant to the tender offer. In addition, Warburg Pincus Private Equity IX, which owns around 28% of Inspire, has agreed to tender all of its shares into the offer.