Print Story: Novartis to Buy Rest of Chiron for $5.1B on Yahoo! News:
Novartis to Buy Rest of Chiron for $5.1B
By SAM CAGE, Associated Press Writer
Mon Oct 31, 7:59 AM ET
Note: Chiron has a production facility in the City of Vacaville located in Solano County.
Swiss pharmaceutical maker Novartis AG said Monday it agreed to buy the 58 percent of Chiron Corp. that it does not already own for $5.1 billion, improving a previous offer that the embattled biotechnology company had rejected.
Novartis, which made an initial $4.5 billion proposal last month that was rejected by the second-largest vaccine maker in the United States, said it had sweetened its offer to acquire approximately 113 million Chiron shares for $45 each in cash.
That represents a 23 percent premium over Chiron's closing price on Aug. 31, the last trading day before Novartis proposed buying the shares at $40 each, the Basel, Switzerland-based company said. Shares of Chiron rose 85 cents, or about 2 percent, to $44.25 in pre-market trading.
Chiron's board had called that offer "inadequate," but has recommended that shareholders vote to approve the new offer.
Vaccines will form a new business unit at Novartis, while Chiron's biopharmaceuticals will be integrated into the Swiss company's existing pharma business, said Novartis Chairman and Chief Executive Daniel Vasella.
"Our plan is to turn around the Chiron vaccines business, which will require investments in R&D and manufacturing to increase quality and capacity, so that we can better meet customer demand and address public health needs," Vasella said.
The transaction will give Novartis entry into a "dynamic growth market," while strengthening Chiron's ability to meet patients' needs with high-quality vaccines, the company said.
Annual cost synergies of $200 million are anticipated within three years of closing the deal, with half expected to be achieved in the first 18 months, Novartis said.
Chiron has been crippled this year by plunging profits and surging expenses resulting from a vaccine debacle last year, when problems at its British production facility kept it from delivering any of its Fluvirin flu vaccine to the United States. Chiron had been slated to supply about half the nation's vaccine.
Similar problems at a Chiron vaccine plant in Germany this year also forced the company to scrap plans to supply the European flu shot market.
Chiron's 2004 profit of $156 million and revenue of $1.7 billion was about half of what the Emeryville, Calif.-based company earned in 2003. Novartis had profits of $5.8 billion and $28.2 billion in revenue last year and is the world's sixth-largest drug company.
Last week, Chiron Corp. reported its third-quarter earnings nearly doubled from last year to $51 million on revenue of $479.6 million. Most of the profit improvement was because the manufacturing problem was in the third-quarter of last year.
Chiron called the latest quarter a "turning point" because federal regulators have approved its first batches of flu shots, about 1.5 million, for delivery. The company offered no further guidance on how many flu shots it expects to deliver this year.
Monday, October 31, 2005
- ► 2007 (799)
- ► 2006 (662)
- VA hastens Dixon veterans cemetery construction
- Solano's jobless matches national average
- Solano County get Chinese Sister City - Ji'an
- Solano County gets sister city in China
- Vallejo Waterfront deal OK'd
- Vallejo schools bump up its testing scores
- Last-minute Negotiations Key to Deal for Waterfron...
- The Vacaville Planning Commission is expected to v...
- A white tablecloth Italian restaurant and lounge w...
- A glimpse at Vallejo's waterfront future
- Vacaville schools do well with state targets
- Solano County Supervisors consider new English Hil...
- City of Dixon Planners, Council to digest report o...
- Novartis to Buy Rest of Chiron for $5.1B
- Chiron gets $62M deal for bird flu vaccine stockpi...
- Solano County seeking its foothold on the wine ind...
- Arming for potential disaster in Vacaville
- Calif. new-home building set for banner year -repo...
- VA hastens veterans cemetery construction near Dix...
- Traffic fears mar Solano County fairgrounds plan
- Sacramento in top 50 of logistics-friendly cities
- Developers seeking out shut-down military base in ...
- Solano County Board of Supervisors and delegates f...
- The unemployment rate in Solano County was down to...
- Chiron expects market share boost
- Office space leases slowing in Silicon Valley
- Vallejo Waterfront developer waits for OK from cou...
- Fairfield City staffbegins study to look at motel ...
- G V Cellars to debut in Green Valley
- Smallest city in Solano, Rio Vista is reshaping ma...
- California lost jobs in September - The Sacramento...
- Dr. Gunnar Weikert, chairman of Inventages Venture...
- The Sonoma County Economic Development Board today...
- the Sacramento region should grow by almost 370,00...
- Developers asking voters to open land for housing ...
- 11 Bay Area School Districts Asking Voters for $1...
- Construction underway for Venture Commerce Center ...
- Holiday Inn Sale Becomes Official
- High Rise Work OK'd
- Downtown Mall Gets Fresh Look
- Study Predicts Economic Growth in Fairfield
- Benicia Business Park Expansion Progressing
- Ground Broken for New Library
- County Called One of the Nation's '100 Best Commun...
- Changes for Collinsville?
- Suisun's Newest Neighborhood
- Building a Village
- Study: Vallejo Area to Lead Region's Economic Grow...
- Napa-Solano Trail Dedication this Weekend
- City OKs Plan for Downtown
- Council Approves Villages Project
- PG&E Gets OK to Discount Rates to Keep Businesses ...
- Second Street Starts
- Mills Corp., Sierra Club Present Separate Plans fo...
- Milk Farm Vision Vies on Reality
- Fairfield-Suisun District Encouraging National Cer...
- Healthy Local Job Market Predicted
- A State of the Art Brewery
- Council to Discuss Plans for Fairfield/Vacaville T...
- Leasing Picks up For Benicia Industrial Condos
- Genentech profits surge 56 percent
- Big changes are being planned for the northern ”ga...
- Job growth will accelerate the Bay Area's commerci...
- Fairfield's Urban Infill
- 'Bold Plan' for Revitalization
- T.G.I. Friday's and BJ's Restaurant and Brewhouse ...
- Gas Crunch a Selling Point for housing development...
- Indirectly, High School Project Begins
- Housing Still Hot
- Article Last Updated: Friday, Aug 26, 2005 - 10:57...
- Air Expo Returns to Travis in October
- Business Owners Get Chance to Buy Offices
- Fairfield's Next Big Housing Project on the Way
- Nut Tree's New Era Begins
- Vacaville Officials, Project Managers Break Ground...
- Rebirth of a Landmark: Nut Tree to be Revived
- Ceremony to Mark New Nut Tree's Start
- Vacaville May Get New Furniture Store
- Local After School Programs Get State Grant
- Aiming for a Wonderful Life
- Genentech Construction Schedule Hits it Mark
- Firm Marks Anniversary
- Aerial Pesticides Not Used in Solano Due to Low Th...
- STARS on the Rise
- New Highway 37 Debuts Today
- Own your own business
- Meyer Adding 2 Warehouses to Facility
- Now and the Future
- Solano Exhibit Wins Award at State Fair
- STAR Scores Show Improvement Both Locally, Statewi...
- Sutter Buys Land to Expand Medical Facility
- The Growing Niche of City Development
- Land Trust Gets Funds for Preservation
- Timing is Everything
- The New Highway 37: 50 Years in the Making
- Racetrack Report Set for Release
- Region's Firms in Upbeat Mood
- Bank Sells Lagoon Valley Parcel for $6.6 Million
- M.I. May Get Shuttle Buses to Ferry Dock
- ▼ October (125)
- ► 2004 (125)