LONDON & WALTHAM, Mass.--(BUSINESS WIRE) -- GlaxoSmithKline plc (GSK) and PRAECIS PHARMACEUTICALS INCORPORATED (Nasdaq: PRCS) announced today execution of a definitive agreement providing for GSK to acquire all outstanding shares of PRAECIS’ common stock for a cash purchase price of US $5.00 per share or a total of approximately $54.8 million for the entire equity interest of PRAECIS.
“PRAECIS has created novel therapeutic programs and innovative chemical-synthesis and screening technology that will complement our own discovery capabilities,” said Allen Oliff, Senior Vice President, Molecular Discovery Research, GSK.
Kevin F. McLaughlin, PRAECIS’ President and Chief Executive Officer, stated, “We are pleased to announce this transaction which culminates a process initiated and directed by our Board to enhance and realize value for our stockholders.”
The acquisition will be effected by means of a cash tender offer by a wholly owned subsidiary of GSK for all of the outstanding shares of PRAECIS, at a cash purchase price of $5.00 per share, followed by a second-step merger in which any untendered PRAECIS shares would be acquired at the same price per share. The acquisition is subject to certain conditions, including the tender of a majority of the shares of PRAECIS common stock, and other customary conditions. The transaction has been approved by GSK and by the board of directors of PRAECIS. GSK and PRAECIS expect the tender offer to be commenced in early January 2007 and to close in the first quarter of 2007.
Canaccord Adams Inc. served as financial advisor to PRAECIS in this transaction.
About GlaxoSmithKline plc
GlaxoSmithKline plc – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For company information including a copy of this announcement and details of the company’s updated product development pipeline, visit GSK at www.gsk.com.
PRAECIS PHARMACEUTICALS INCORPORATED is a biopharmaceutical company focused on utilizing its proprietary technologies for the discovery and development of novel compounds that have the potential to address unmet medical needs or improve existing therapies. PRAECIS has a novel MetAP-2 inhibitor, PPI-2458, in clinical development for cancer indications, including non-Hodgkin’s lymphoma and solid tumors, an innovative drug discovery technology, DirectSelect™, which enables the generation and practical use of ultra-large libraries for the discovery of orally active compounds for drug development, and a research and development program aimed at identifying one or more selective S1P-1 agonist compounds to advance into clinical testing.