Forest Laboratories Inc. (FRX) extended its tender offer for
Clinical Data Inc. (CLDA) by a week, saying it may walk away from
the $1.2 billion takeover offer if minimum requirements of the deal
aren't met by then.
As of the close of business Friday, about 47.6% of Clinical
Data's shares outstanding had been tendered. Terms of the deal
require, among other things, that about 78.2% of such securities be
tendered.
Forest in February agreed to buy Clinical Data for $30 a share,
betting that antidepessant Viibryd can help offset the loss of
major products in coming years. It also may pay an additional $6 a
share based on the sales performance of Viibryd.
The planned deal is part of Forest's strategy to offset the
looming generic competition for its biggest-selling drugs,
antidepressant Lexapro and Alzheimer's disease drug Namenda, which
provided 85% of product sales in the company's fiscal third quarter
ended Dec. 31. Patents for Lexapro expire next year, and Namenda
loses similar protection in 2015.
Forest, which also sold antidepressant Celexa--which went
generic in 2004--plans to launch Viibryd in the U.S. during the
second half of this year.
Clinical Data shares were up 1 cent at $30.34 in recent trading.
The shares have surged since Viibryd was approved in January and
Forest made its offer in February. Forest shares rose 25 cents to
$33.05 recently.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com