Tuesday, January 13, 2009

NitroMed considers revised buyout offer

By Marc Songini

Lexington-based drug developer NitroMed Inc. has received a higher per share price offer from Deerfield Management, which has been attempting to negotiate a buyout in recent months.

The buyout offer, which is unsolicited, last month stood at 50 cents per share. NitroMed (NASDAQ: NTMD) said that it received a letter from Deerfield Management on Friday with a revised offer from 50 cents per share in cash to 65 cents per share in cash. NitroMed is prepared to enter into discussions but stated there can be no assurances that it will reach an agreement of any sort.

Deerfield Management already owns 12 percent of NitroMed. However, any agreement with Deerfield Management will have to factor in NitroMed’s current deals with JHP Pharmaceuticals LLC and Archemix Corp. In November last year, NitroMed announced plans to merge with Cambridge-based biotech firm Archemix in an all-stock swap transaction. In October 2009, JHP Pharmaceuticals LLC acquired NitroMed’s BiDil and BiDil XR drug business. The BiDil and BiDil XR drug business transaction and the Archemix merger are subject to NitroMed stockholder approval and other conditions.

Also last month, pharmaceuticals giant GlaxoSmithKline PLC formed a $27.5 million alliance with Archemix Corp. to co-develop aptamer technology to treat inflammatory disease

NitroMed developed BiDil, a heart failure pill designed specifically for African-Americans. In January 2008, NitroMed laid off most of its staff and ceased marketing efforts for BiDil.