Millennium Agrees To Acquire AnorMED

Millennium Pharmaceuticals has announced an agreement to acquire AnorMED for $515 million, a price representing a 40% premium over the hostile bid for AnorMED made by Genzyme in August (C&EN, Sept. 4, page 23).

Millennium's target in the acquisition is the Canadian firm's hemotology-oncology therapy Mozobil, a small-molecule chemokine antagonist currently in Phase III clinical trials. Mozobil has been shown to mobilize bone marrow stem cells in myeloma and lymphoma patients undergoing transplantation. According to Millennium CEO Deborah Dunsire, it would complement her firm's Velcade, a myeloma drug codeveloped with Johnson & Johnson.

AnorMED already has had one success story in Fosrenol, a drug that reduces phosphate levels in patients with renal diseases. It sold the rights to the drug to Shire Pharmaceuticals in 2004.

Brian Bapty, an analyst at the brokerage firm Raymond James, says Genzyme's offer was "clearly a stink bid" placed after Genzyme failed to reach a partnership deal with AnorMED. He says Millennium's offer is in line with the value of Mozobil, which has synergies with Velcade and strong Phase II and safety results. The offer "is at the low end of the fair range," he says.