Novo Nordisk Bids Belgian biotech group Ablynx for $3.1B
Danish drugmaker Novo Nordisk has now revised up its offer for Belgian rare disease drug developer Ablynx as it looks to find growth opportunities beyond its core business offering up to 30.50 euros for each Ablynx share, valuing the company at around 2.6 billion euros ($3.1 billion).
Novo went public after Ablynx rejected a proposal that includes an upfront cash offer of 28 euros a share and additional cash payments known as contingent value rights of up to 2.50 euros per share tied to the success of two experimental medicines, the Bagsvaerd, Denmark-based drugmaker said.
The unsolicited bid comes at a time of renewed interest by large drugmakers in smaller biotech firms, with U.S.-based Celgene clinching a deal to buy Impact Biomedicines for up to $7 billion on Sunday and Japan’s Takeda Pharmaceutical agreeing last week to buy another Belgian biotech group TiGenix for $630 million.
Ablynx said in a statement that its board “unanimously concluded that the proposal fundamentally undervalues Ablynx and its strong prospects for continued growth and value creation”.
The Belgian group specializes in the research of novel drugs based on nano-bodies found in the immune systems of llamas
and alpacas, for which it partners with several of the world’s largest pharmaceutical companies.The main attraction for Novo is Ablynx’s experimental drug caplacizumab for the rare bleeding disorder acquired thrombotic thrombocytopenic purpura, which would complement Novo’s line-up of blood products focused on haemophilia.
Ablynx had already rejected an offer by the Danish group on Dec. 14 and Novo Nordisk said the new bid, made on Dec. 22, was some 14 percent higher.
“Novo Nordisk regrets that the board of directors of Ablynx has so far declined to engage in any discussions, despite the proposals which have been put forward,” it said in a statement.
