Myriad to acquire Javelin in stock deal valued at $96 million

Myriad Pharmaceuticals has entered into an agreement to buy fellow USA-based biotechnology firm Javelin Pharmaceuticals in an all-stock deal estimated at about $96 million, gaining rights to Javelin's lead post-operative pain drug, Dyloject (diclofenac sodium for injection), which is awaiting approval from the Food and Drug Administration for the multimodal management of moderate-to-severe post-operative pain.

Under the accord, Myriad will acquire all of the outstanding shares of Javelin common stock in exchange for its own stock, resulting in the Javelin stockholders owning about 41% of the combined company immediately after the closing. The ownership interest of Javelin shareholders may increase up to a maximum of around 45% depending upon the timing of the FDA's approval of its lead drug candidate Dyloject.

Dyloject is approved and marketed in the UK by Therabel Pharma NV, and Myriad will assume all rights to future milestone payments and royalties due from Therabel.