Millennium Pharmaceuticals, Becoming Part of Takeda in Japan (MLNM)

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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 jonogg@247wallst.com and he does not own securities in the companies he covers.