Celltech Chiroscience Plc has agreed to acquire Medeva Plc. The move would bring together Celltech Chiroscience's development pipeline with Medeva's existing American and European sales and marketing operations.
The new Celltech Group Plc would be divided into two businesses: Celltech Chiroscience, which would consist of the research and development operations, and Celltech Medeva, the sales, marketing and manufacturing operations.
Products which the Medeva sales force could be selling in the next few years include CDP 571, a humanised anti-TNFa antibody for Crohn's disease, CDP 870, a modified anti-TNF antibody fragment for rheumatoid arthritis and Hepagene, Medeva's recombinant vaccine in trials for both prophylaxis and treatment of hepatitis B.
Under the agreement, which was announced on November 11, Medeva shareholders would receive 34 new Celltech Chiroscience shares for every 100 Medeva shares. This values Medeva at around £563m and produces a new company with a market capitalisation of around £1.3bn, making it Britain's fourth largest pharmaceutical company. Medeva had previously had merger talks with Shire Pharmaceuticals Plc and the Irish company, Elan.