Millennium Pharmaceuticals makes $2 billion acquisition

US company Millennium Pharmaceuticals has announced that it has bought COR Therapeutics in a stock-for-stock exchange valued at $2.0 billion.

Millennium Pharmaceuticals, Inc. and COR Therapeutics, Inc. have announced that they have signed a definitive agreement for Millennium to acquire COR in a stock-for-stock exchange valued at $2.0 billion.

The combined company will be named Millennium Pharmaceuticals, Inc., with worldwide headquarters in Cambridge, Massachusetts.

According to a statement, this merger will create a leading biopharmaceutical company with multiple products on the market, nine candidate products in human clinical trials, four therapeutic franchise areas, a strong commercial operating presence, and more than 1,200 employees in research and development.

The two companies reportedly bring together complementary capabilities by uniting COR’s cardiovascular expertise and anti-platelet cardiovascular product, INTEGRILIN (eptifibatide) Injection, with Millennium’s genomic-based research, drug discovery and development technology platform, business leadership in strategic alliances, and product pipeline in oncology, inflammation and metabolic disease.

The merger agreement, which has been approved by the boards of directors of both companies, provides that COR shareholders will receive 0.9873 shares of newly issued Millennium common stock in exchange for each COR share.

As a result of this transaction, Millennium expects to issue a total of approximately 58 million new shares to current COR shareholders.

As of September 30, 2001, COR had approximately $633 million in cash, cash equivalents and marketable securities. The transaction is subject to approval by Millennium and COR shareholders and is expected to close in the first quarter of 2002.