Pharma BD Deal Intelligence

OSI Pharmaceuticals / EyeTech Pharmaceuticals Inc.

2005 · Acquisition/Merger · $935M · Complete

CALLED IT — OFF BY 15

A ~$935M bet on Macugen collapsed within a year of close and OSI gave the business away by 2008 — one of the more clear-cut failed pharma acquisitions of the mid-2000s.

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The coverage arc

Aug 22, 2005 Washington Post Bearish

OSI shares fell sharply on the Eyetech deal announcement as investors questioned the diversification rationale and Macugen's competitive durability.

Nov 14, 2005 Technology Networks Neutral

OSI completed the Eyetech acquisition for ~$935M ($20/share, 43% premium), gaining Macugen for wet AMD as a complement to Tarceva in oncology.

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OSI agrees to acquire Eyetech for ~$935M cash+stock ($20/share, 43% premium). Gains Macugen (wet AMD). Closed Nov 14, 2005.

Did it work? Outcome assessment

A ~$935M bet on Macugen collapsed within a year of close and OSI gave the business away by 2008 — one of the more clear-cut failed pharma acquisitions of the mid-2000s.

Strategic verdict
Failed to Achieve

Key facts

Related deals — scored

DealYearValueOutcome
OSI Pharmaceuticals / EyeTech Pharmaceuticals Inc. (this deal)2005$935M10
OSI Pharmaceuticals / Gilead Sciences (oncology assets)2001$200M28
AstraZeneca PLC / KuDOS Pharmaceuticals Limited2005$210M98
Yamanouchi Pharmaceutical / Fujisawa Pharmaceutical Co. Ltd.200592
Sankyo Co., Ltd. / Daiichi Pharmaceutical Co., Ltd.2005$8.0B92
Cephalon Inc. / Salmedix, Inc.2005$160M89
Roche Holding AG / GlycArt Biotechnology AG2005$182M80

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