This is a very straightforward and essentially complimentary acquisition by Shionogi, based on the information available so far. Shionogi is a somewhat limited pharmaceutical company in that it is currently active in only six treatment areas, while focusing primarily in antibiotics. It currently offers six products in the "Infectious Diseases" (antibiotics) segment:
1. Avelox (moxifloxacin)
2. Finibax (doripenem)
3. Flomox (cefcapene pivoxil)
4. Flumarin (flomoxef sodium)
5. Tamiflu (oseltamivir)
6. Vancomycin (vancomycin hydrochloride)
Shionogi also offers single products in the following treatment segments: "Crestorro"/rosuvastatin calcium (Metabolic Syndrome); "Imunace"/recombinant interleukin-2 (Anticancer); "OxyContin"/oxycodone (Neurology); "Claritin"/loratadine (Allergy) and "Dobutrex"/dobutamine (Circulatory).
In comparison, SCRX's product portfolio is as follows:
Cardiology/Diabetes
|
Women's
Health
|
Pediatric
|
| Sular
(nisoldipine) |
Prenate DHA
(metafolin) |
Allegra (fexofenadine
hydrocholoride) |
| Nitrolingual
(nitroglycerin sublingual spray) |
Prenate Elite
(metafolin) |
Methylin |
| Altoprev
(lovastatin) |
Zovirax |
Orapred (prednisolone
sodium phosphate) |
| Fortamet (metformin
HCl) |
|
|
| Triglide
(fenofibrate) |
|
|
Although it can be said that broad overlaps exist in the cardiology (Imunace)and allergy (Allegra Claritin) segments, there are no niche overlaps, nor any segment lacking intense competition from the major pharmaceutical players.
In short, this transaction will be of no interest to competition regulators, which most likely will be limited to the FTC. Early termination of the HSR review is fully anticipated in this case.
Assuming the initial tender offer statement is submitted to the SEC before the end of next week, Shionogi should have little difficulty completing the tender offer in 45 days or less.
