US biopharmaceutical firm Spectrum Pharmaceuticals Inc (NASDAQ:SPPI) has once again prolonged its tender bid to take over anti-cancer therapeutics specialist Allos Therapeutics Inc (NASDAQ:ALTH), this time until 22 June 2012, the pair announced.
The extension is needed as the two companies continue to work with the Federal Trade Commission (FTC) to obtain clearance under the Hart-Scott-Rodino act. On 9 May, the FTC made a request for additional information regarding the deal in order to make its ruling. Spectrum has already prolonged its tender offer twice since that date.
The agreement on the transaction was first announced on 5 April 2012 and the tender bid commenced on 13 April. The offer includes a cash payment of USD1.82 (EUR1.46) per share plus one contingent value right (CVR) for additional USD0.11 a share based on the achievement of some regulatory and commercialisation milestones.
The upfront portion of the price is valued at up to USD206m in total and USD108m net of Allos’ cash balance at the end of 2011, Spectrum has said. It plans to cover the price with existing cash and debt.
The buyer had previously said that the acquisition would provide a new diversified revenue source.
Allos is the developer of the Folotyn drug for the treatment of patients with relapsed or refractory peripheral T-cell lymphoma (PTCL), approved by the US Food and Drug Administration (FDA) in September 2009.