Solvay Pharmaceuticals launches ‘friendly’ bid for Innogenetics

Solvay Pharmaceuticals has announced a conditional tender offer for biotechnology company Innogenetics for a total value of 177.6 million euros (139.5 million pounds).

The offer of 5.75 euros per share represents a 53 per cent premium over the closing price of shares on April 23rd and a 42.8 per cent premium over the volume average prices of these shares in the last month.

Solvay reports that this “friendly” bid will seek to build on the companies’ successful research and development partnership, which has been ongoing since 1997.

The firm has been implementing technology from Innogenetics in its own drug discovery programmes and has historically held a 6.77 per cent holding in the company.

Solvay has announced its intention to preserve the operational independence of Innogenetics while also developing and expanding its diagnostics business.

Werner Cautreels, chief executive officer of Solvay Pharmaceuticals, said: “Following the recent refocusing of Innogenetics’ activities, the time has now come to take our long-standing relationship to a new level.”

He added that the business model of the deal is based on the firm’s belief that the future of drug development is bound up in the design of personalised medication with improved efficacy and safety.

In February 2008, Solvay announced its financial results for 2007, with the firm recording a nine per cent rise in operating results for the year, up to 1.2 billion euros.