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Merck buys Sibia for $87M
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August 2, 1999: 10:28 a.m. ET
Small biotech company develops drugs for central nervous system
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NEW YORK (CNNfn) - Merck & Co. Inc. agreed Monday to buy Sibia Neurosciences Inc., a developer of drugs to treat central nervous system disorders including Parkinson's disease and Alzheimer's, for about $87 million in cash.
Merck will pay $8.50 per share in cash for each share of Sibia stock outstanding in a tender offer slated to begin Friday. Shares in Sibia (SIBI) catapulted 3-1/8 to 8-3/8 in early trading Monday after the deal was announced.
Merck (MRK), the largest U.S. drug maker and a component of the Dow industrial average, slipped 1/16 to 67-9/16.
La Jolla, Calif.-based Sibia, which went public three years ago, is involved in the discovery and development of small molecule therapeutics for the treatment of neurological disorders.
"Sibia researchers, who are among the best in the biotechnology industry, have opened several avenues for potential scientific discovery, and now we can further exploit them together," said Bennett M. Shapiro, executive vice president of worldwide licensing and external research for Merck Research Laboratories.
Merck said the acquisition should be completed in September, pending regulatory approval.
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