|BioForm Medical agrees to controversial buyout|
|By Staff and Wire Reports|
|Monday, 04 January 2010 13:49|
(NASDAQ:BFRM), a San Mateo, Calif., biotech company has agreed to be purchased by German pharmaceutical company in a transaction valued at $253 million.
Merz, based in Frankfurt am Main, Germany, will acquire all of the outstanding shares of BioForm Medical for $5.45 per share in cash under a cash tender offer followed by a second-step merger. The cash purchase price represents a premium of 55 percent more than over BioForm Medical's 30-day average closing stock price, and a premium of 60 percent more than the closing price of BioForm Medical's common stock on Dec. 31, 2009, the last trading day prior to today's announcement.
BioForm, a medical aesthetics company focused on developing and commercializing products that are used by physicians to enhance a patients appearance, develops and commercializes inject-able implant products for soft-tissue augmentation applications. Upon completion of the transaction, BioForm Medical will be renamed Merz Aesthetics and become a wholly owned subsidiary of Merz. With BioForm Medical, the new Merz Aesthetics will be distinguished in the marketplace by its ability to offer BioForm's flagship product, Radiesse body tissue filler, along with other dermal filler technologies.
"Together with BioForm Medical, we will have even greater potential for future growth in our worldwide, fast growing aesthetics and dermatological business," said Jochen Huckmann, chairman of the Merz Shareholders Council.
Meanwhile, law firms including Kendall Law Group and Levi & Korsinsky are scrutinizing the proposed deal citing concern for BFRM's shareholders and whether they received fair value for the company as well as possible breaches of fiduciary duties by BioForms board for entering into an agreement that allegedly contains protection against BFRM from receiving higher bids.
Shares of BFRM are up over $2.00 on the news.