ISTA Pharmaceuticals has rejected an unsolicited, non-binding proposal from Valeant Pharmaceuticals to acquire all of its outstanding shares on the grounds that the offer “was grossly inadequate.” ISTA’s board voted unanimously against the proposal. The company’s pipeline includes two bepotastine nasal spray candidates, one in combination with a steroid, for the treatment of allergic rhinitis.
Valeant says that it “is disappointed by ISTA’s rejection of its proposal and ISTA’s unwillingness to engage in discussions,” with Chairman and CEO J. Michael Pearson asserting that, “The proposed $6.50 per share price represents a meaningful premium to ISTA’s recent trading performance, and we believe it represents a compelling opportunity for ISTA’s shareholders in light of the continuing challenges facing ISTA.”
“We would be willing to consider improving our offer price if we were allowed to conduct due diligence and found additional value,” Pearson added; “Given the importance of the proposed transaction to shareholders of both companies, we have decided to make our proposal public. We believe ISTA stockholders should not be denied the opportunity to determine for themselves whether their board and management should engage with Valeant in a meaningful and productive dialogue regarding our proposal. We have already devoted significant time and resources to pursing this potential transaction. Therefore, consistent with our past disciplined approach to acquisitions, our $6.50 offer will only remain in effect until January 31, 2012.”
Both companies released copies of the letters sent back and forth regarding the proposal.
Read the ISTA press release.
Read the Valeant press release.
