|Closer look: The Allos Therapeutics Buyout Offer|
|By Staff and Wire Reports|
|Wednesday, 12 October 2011 08:10|
AMAG is reportedly working with the management team at Allos to complete the all-stock acquisition valued at $2.44 a share when the deal was announced in July. That deal is now said to be worth $1.70 after AMAG’s share price dropped. Shares of Allos dropped from approximately $1.70 to $1.40 two sessions ago.
“Do not rely on MSMB Capital’s illusory proposal,” AMAG said in a filing today to investors. “Your Board believes that the combination with Allos will create a financially strong company.”
AMAG investors are scheduled to vote on the Allos acquisition on Oct. 21.
Allos develops a proprietary product that has the potential to improve the standard of care in cancer therapy. It is focused on the development and commercialization of FOLOTYN(TM) (pralatrexate injection), a folate analogue metabolic inhibitor. Its FOLOTYN(TM) is used for the treatment of patients with relapsed or refractory peripheral T-cell lymphoma. The company is also developing FOLOTYN in other potential indications.
Allos has collaborations with Hovione FarmaCiencia SA, University of Colorado, Cancer Research Technology Ltd., University of Salford, Cancer Research UK, Baxter International Inc, Memorial Sloan-Kettering Cancer Center, Akorn Inc, and others.
The BioMedReports FDA Calendar indicates that during the second quarter of 2010, Allos initiated patient enrollment in a Phase II, open-label, single-arm, multi-center international study of Folotyn in female patients with advanced or metastatic breast cancer who have failed prior chemotherapy. They expect to report Folotyn top line data for Phase II trial in the second half of 2011.
We also see a related milestone. In July 2008, Allos initiated patient enrollment in a Phase II, open-label, single-arm, multi-center study of Folotyn in patients with advanced or metastatic relapsed TCC of the urinary bladder. The Phase II group expects to report top line data for Bladder Cancer Phase II trial in the second half of 2011.
Allos shares are trading -69.85 % from their 52-Wk High of $ 4.81. The small-cap firm's outstanding shares show a 97.80% ownership by institutions.