Abbott Labs Acquires ALZA Corp.
Abbott Laboratories (Abbott Park, IL) has entered a definitive agreement to acquire ALZA Corp. (Palo Alto, CA), a research-based pharmaceutical company. The transaction, which is valued at approximately $7.3 billion, is expected to be complete by the end of 1999.
Under the terms of the agreement, Abbott will acquire all of ALZA's outstanding stock in a stock-for-stock merger transaction intended to be tax-free. ALZA shareholders will receive a fixed exchange ratio of 1.20 shares of Abbott common stock for each share of ALZA. Abbott intends to account for the transaction as a pooling of interests. The transaction is subject to approval by ALZA's stockholders, regulatory agencies, and customary closing conditions.
"ALZA brings a number of key assets to Abbott that provide both short- and long-term value, including: a portfolio of pharmaceutical products that Abbott can rapidly grow and expand through its strong global sales organization; new products in development; strong technical relationships with pharmaceutical industry partners; and important scientific expertise in drug delivery technologies that enhance patient care and provide a strategic technology platform for application across all of Abbott's diverse businesses," said Miles D. White, chairman and CEO of Abbott Laboratories.
Upon closure of the transaction, there will be a restatement of 1999 earnings. Abbott expects the acquisition will result in a $.03 dilution in 2000, and will be accretive to earnings in 2001 and thereafter. In addition, the acquisition will result in a one-time charge of approximately $100 million in 1999.
ALZA Corp. is a research-based pharmaceutical products company that applies its drug delivery technologies to develop products for its own portfolio and for other pharmaceutical companies.
Abbott Laboratories is a health care company devoted to the discovery, development, manufacture, and marketing of pharmaceutical, diagnostic, nutritional, and hospital products.
For more information, call Melissa Brotz of Abbott Laboratories at 847-935-3456.