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Sugen's strategy: a signal for P&U purchase

Nature Biotechnology volume 17, pages 745–746 (1999)Cite this article

With financing from Wall Street still sparse, biotechnology companies continue to look to collaborations with big pharmaceutical companies or larger biotech companies in order to access much-needed resources. In mid-June, Pharmacia & Upjohn (P&U; Bridgewater, NJ) agreed to acquire the signal transduction concern, Sugen (South San Francisco, CA), in a deal valued at $650 million. Sugen managed to secure a healthy price tag thanks in part to a strategy of refusing to license out early-stage products.

P&U, looking to strengthen its oncology pipeline and regain a leading role in the $11 billion oncology marketplace, will exchange $31 worth of P&U stock for Sugen stock—a 38% premium to Sugen's share price of $22.5 at the time of the announcement. Sugen, which needs a corporate partner to fund large-scale trials and accelerate commercial development of its compounds, brings to the agreement an advanced pipeline of complementing anticancer products.

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  1. Vicki Glaser is a freelance writer working in Allentown, PA.

    • Vicki Glaser
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Glaser, V. Sugen's strategy: a signal for P&U purchase. Nat Biotechnol 17, 745–746 (1999). https://doi.org/10.1038/11670

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