FTC Okays Actavis' Pending Acquisition Of Durata - Quick Facts

(RTTNews) - The U.S. Federal Trade Commission, or FTC, on Friday cleared Actavis plc's (ACT) pending acquisition of Durata Therapeutics Inc. (DRTX). The FTC granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the deal.

The FTC approval satisfies one of the conditions to the closing of the pending acquisition, which remains subject to other customary closing conditions. Both companies expect the transaction to be completed in the fourth quarter of 2014.

Earlier this month, specialty pharmaceutical company Actavis agreed to acquire Durata for $23.00 per share in an all-cash deal valued at about $675 million.

The shareholders of Durata will also receive contingent value rights for additional cash payments of up to $5.00 per share on reaching certain regulatory thresholds or commercial milestones related to Durata's lead product Dalvance.

The deal closure is also subject to the tendering of at least one share more than 50 percent of the outstanding shares of Durata common stock on a fully-diluted basis.

The offer price represents a hefty 65.7 percent premium over Durata's closing share price of $13.88 on Friday.

Following the completion of the deal, Durata will merge with and become a subsidiary of Actavis and Durata's shares will be delisted from NASDAQ. Actavis expects the deal to be accretive by the end of the first year.

The deal will boost Actavis' long-term growth profile beyond 2015. It will bolsters Actavis' infectious disease expertise by the addition of an experienced development and commercial team from Durata. It also leverages Actavis' hospital sales and marketing capabilities.

The acquisition of Durata immediately enhances Actavis' Infectious Disease portfolio with the addition of Dalvance (dalbavancin) for injection, which is the first and only IV antibiotic for acute bacterial skin and skin structure infections (ABSSSI) with once-a-week dosing for two weeks.

Dalvance was approved by the U.S. Food and Drug Administration on May 23, and was the first drug approved as a Qualified Infectious Disease Product (QIDP).

Actavis had reportedly made an offer to acquire Botox maker Allergan Inc (ALGN) last month. However, Allergan is said to have rejected the offer as it was focused on finalizing a deal with Salix Pharmaceuticals Ltd (SLXP) in order to fend off a $53 billion hostile bid from Canada-based Valeant Pharmaceuticals Inc. (VRX, VRX.TO).