Friday, December 19, 2008

NitroMed to reconsider Deerfield’s buyout offer

By Mass High Tech staff

NitroMed Inc. has agreed to re-evaluate an unsolicited acquisition proposal from Deerfield Management that was first offered earlier this month and then clarified earlier today.

In November, NitroMed, a Lexington drug developer, announced plans to merge with biotech firm Archemix Corp. in an all-stock swap transaction. The original proposal by Deerfield Management, which owns 12 percent of NitroMed, seemed to imply that its acquisition would be “in lieu of NitroMed’s proposed merger with Archemix.” NitroMed announced in a statement that Deerfield clarified its intentions by stating that its proposal for acquisition would be instead of the Archemix merger deal, as well as as the proposed JHP Pharmaceuticals LLP acquisition of NitroMed’s BiDil and BiDil XR drug busines.

Deerfield’s proposal offered 50 cents per NitroMed (Nasdaq: NTMD) share in cash. NitroMed’s common stock closed Thursday at 37 cents per share.

NitroMed develops BiDil, a heart failure pill designed specifically for African-American patients, which it plans to sell to JHP Pharmaceuticals last month for a possible $26.3 million. The sale is pending shareholder approval.

In January 2008, Lexington-based NitroMed laid off most of its staff and suspended marketing efforts for BiDil.