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KHK bid for ProStrakan

Scotland-based speciality biotech ProStrakan has said Japanese firm Kyowa Hakko Kiri has placed a bid of £292m to acquire the company

Scotland-based speciality biotech ProStrakan has said Japanese firm Kyowa Hakko Kiri has placed a bid of £292m to acquire the company.

ProStrakan, which specialises in developing medicines for the treatment of currently unmet therapeutic needs, said the acquisition would be a 'new opportunity' for the company's development, with the ability to grow at a faster pace across Europe and the US.

KHK also commented on the proposed deal, describing the potential acquisition as a 'key strategic milestone' for the company, with KHK looking to establish itself in European and US markets.

The company also said it would look to use ProStrakan's regulatory and marketing experience for products whose regional rights are already partially held by KHK, as well as using antibody engineering technology to develop new drugs for cancer, kidney disease and immunology.

The board of directors at ProStrakan has unanimously recommended that shareholders vote in favour of the takeover, with meetings to discuss the deal to be held in April 2011. If agreed, ProStrakan said it expects the takeover to commence in June 2011.

A previous takeover bid for ProStrakan from Dutch company Norgine was rejected in November 2010. Norgine did however acquire one-eighth of the company from sanofi-aventis.

"As previously announced, ProStrakan has received a number of approaches, with varying levels of conditionality, and has been evaluating these over the past few months," said Peter Allen, chairman and acting chief executive of ProStrakan. "As a result of this process, the ProStrakan directors consider that the acquisition proposed by KHK is the one which is in the best interests of shareholders and, as a result, have unanimously recommended it to the ProStrakan shareholders."

21st February 2011

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