Sagent Pharmaceuticals shares on Nichi-Iko's tender offer

Sagent's buyer praised the drugmaker's manufacturing and quality control

Sagent's buyer praised the drugmaker's manufacturing and quality control

A top Japanese generic-drug maker announced on Monday it was taking its first steps into the USA market with the $736 million acquisition of an Illinois-based counterpart.

Japan's Nichi-Iko Pharmaceutical agreed to pay $21.75 a share in cash for the company, a 40% premium over Friday's closing price. Through the acquisition, Nichi-Iko will raise its profile in the domestic and worldwide generics market and advance the company's goal of becoming a Top 10 global leader in generics.

"The transaction enhances Nichi-Iko's platform in the US market to commercialize its biosimilar product pipeline and increase its presence in injectables", according to the press release. The offer has been unanimously approved by the boards of Nichi-Iko and Sagent.

The transaction will grant Sagent access to Nichi-Iko's manufacturing infrastructure and quality control systems, while the agreement will raise Nicho-Ikto's portfolio in the generics market, according to a company statement. In addition to this, there is no change expected in the specialty and generics pharmaceutical company's current operations, since the acquirer intends to let its management team continue leading through the Schaumburg, Illinois headquarters.

The deal is expected to close the end of March 2017, and it isn't subject to any financing conditions.

The tender offer will begin in 15 business days after the deal is signed and remain open for at least 20 business days.

Monday morning, Sagent stock was trading near 21.50.

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