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Alza Corp. will acquire Menlo, CA-based Sequus in a transaction valued at approximately $580 million, the companies announced.
PALO ALTO, CALIFORNIA - Alza Corp. will acquire Menlo, CA-based Sequus in a transaction valued at approximately $580 million, the companies announced.
"The acquisition of Sequus and its product, Doxil,Â® is a logical extension of our strategy and adds a proven oncology therapeutic product to our portfolio along with a core technology platform for additional oncology products," said Ernest Mario, M.D., ALZA's chairman and CEO.
Sequus' major product is Doxil, Â® an anticancer drug. ALZA's main products include Procardia XLÂ® for the treatment of hypertension and EthyolÂ® for the reduction of cumulative kidney toxicity associated with repeated doses of the chemotherapy drug cisplatin in advanced ovarian cancer or non-small-cell lung cancer. ALZA also developed the transdermal patch in Nicoderm CQ for the treatment of smoking.
ALZA currently employs approximately 80 oncology sales reps and 280 urology and primary care sales reps. Sequus's oncology sales force is substantially smaller than ALZA's, but will extend ALZA's influence in the oncology community.
"This is an outstanding opportunity for Sequus and our shareholders," said Dr. I. Craig Henderson, Sequus' chairman and CEO. "With this merger, Sequus shareholders will be able to benefit in the growth of Doxil through an integrated sales force almost three times our current size."
Under the terms of the agreement, ALZA will acquire all of Sequus's outstanding stock in a tax-free, stock-for-stock transaction. Sequus shareholders will receive 0.4 shares of ALZA common stock for each share of Sequus common stock.
The transaction, subject to regulatory and Sequus shareholder approval, is expected to close in late 1998 or early 1999. PR