Medicago Inc announced that it has entered into a definitive agreement with Mitsubishi Tanabe Pharma Corporation (MPTC). Based on the parameters of the deal, MPTC will acquire all of the issued and outstanding common shares of Medicago. Upon completion of the transaction for acquisition, Medicago will be jointly owned by Philip Morris Investments B.V. at 40% and of MTPC at 60% stake claim. Philip Morris Investments B.V. is an affiliate of Philip Morris International Inc.
The forecasted purchase price of US$357 million represents 22.1% of the closing price of 0.95 per share as posted on the TSX (Toronto Stock Exchange) on July 12. The transaction will represent the total enterprise value of the company including the assumption of debt for 100% ownership of Medicago.
The deal was approved unanimously by the Board of Directors of Medicago which was followed by a unanimous recommendation for a special committee of Independent Directors for the company.
President and CEO of Medicago, Andy Sheldon, commented, "Mitsubishi Tanabe Pharma, a top 30 global pharmaceutical company, has been a solid and committed partner with the ability to drive Medicago's future growth and success in the development of our best-in-class rapid plant-based vaccines. Mitsubishi Tanabe Pharma's capabilities in biopharmaceutical research, development, and commercialization along with its financial stability offer us the ideal opportunity to realize the full potential of our platform. These resources provide us the ability to foster the development of innovative vaccines with the financial stability to expand our Quebec, Canadian, U.S. and global operations."
Michihiro Tsuchiya, Representative Director of Mitsubishi Tanabe Pharma Corporation said, "Building on our existing collaboration, we look forward to working with the management and employees of Medicago to further develop the business and advance their promising work. We are proud to invest in developing novel vaccines in Qubec City and North Carolina as part of our global operations."
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