MISSISSAUGA, Ontario — Drug maker Valeant Pharmaceuticals has launched a hostile takeover bid for ISTA Pharmaceuticals, the company said.
The company announced Friday the offer of $6.50 per share for ISTA, an Irvine, Calif.-based maker of eye drugs. ISTA stock had a closing price of $3.89 per share on Thursday.
Valeant originally offered to acquire ISTA on Dec. 2, but ISTA's management rejected the deal last Wednesday. Valeant noted that its offer represented a 68% premium over ISTA's 60-day trading average, and ISTA had a net debt of $13 million that brought its total enterprise value to about $327 million.
"We would be willing to consider improving our offer price if we were allowed to conduct due diligence and found additional value," Valeant chairman and CEO J. Michael Pearson said. "Given the importance of the proposed transaction to shareholders of both companies, we have decided to make our proposal public."