REFILE-Astellas: won’t raise OSI bid on FDA move alone

(Corrects in headline to add reference to FDA)

TOKYO, April 19 (BestGrowthStock) – Astellas Pharma (4503.T: ),
Japan’s No.2 drugmaker, said on Monday it has no plan to lift
its bid for OSI Pharmaceuticals (OSIP.O: ) despite U.S. regulators
approving wider use of OSI’s cancer pill Tarceva.

“We will not raise our offer based on the approval, though
we still may change the offer based on the outcome of our
ongoing due diligence under our confidential agreement with
OSI,” Astellas spokesman Ryuji Samukawa said.

Astellas will likely take until the May 15 deadline set in
the confidential agreement, which allows it to review OSI’s
non-public information, to complete the due diligence process,
Samukawa said.

The U.S. Food and Drug Administration cleared the
blockbuster lung cancer pill Tarceva for use by patients with
lung cancer that remains stable after chemotherapy. Tarceva is
already used for treating lung cancer that worsens after
chemotherapy. [ID:nN16168556]

OSI and its business partner Roche Holding AG (ROG.VX: )
co-market Tarceva, which logged $1.2 billion in sales last year.

Astellas has launched a hostile takeover bid for OSI. It
recently extended to April 23 the deadline for the $52 per share
tender offer, which would total $3.5 billion.

OSI says the offer is too low. Its shares closed at $59.52,
down 0.8 percent, on Friday on the U.S. Nasdaq market. Astellas
tumbled 2.2 percent to 3,380 yen, underperforming the broader
local drug sector which shed 1.8 percent, on Monday in Tokyo.

Stock Analysis

(Reporting by Yumiko Nishitani; Editing by Hugh Lawson)

REFILE-Astellas: won’t raise OSI bid on FDA move alone