Millennium Pharmaceuticals Inc. (NASDAQ: MLNM) is being acquired. Takeda Pharmaceuticals in Japan is paying some $8.8 Billion to acquire the biotech, which had a market cap of $5.3 Billion as of yesterday.
The cash buyout will come at $25.00 per share, roughly a 50% premium to Wednesday’s $16.35 close. Its 52-week trading range was $9.49 to $17.19. This is also more than a 25% premium to any prices this one has seen over the last 5-years.
This acquisition will help Takeda go from heart and diabetes into more of a cancer treatment, which will further diversify its operations. Analysts expect Millennium to post $almost $570 million in revenues this year and $673 million in revenues next year.
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Jon C. Ogg
April 10, 2008
Jon Ogg produces the Special Situation Investing Newsletter. He can be reached at firstname.lastname@example.org and he does not own securities in the companies he covers.