Hisamitsu to Buy Noven for $428 Million

Hisamitsu Pharmaceutical agreed to buy Noven Pharmaceuticals for $428M as the Japan-based company looks to boost its presence in the U.S. The move comes as many drug makers looked for combinations in the face of continuing generics, pricing pressure, economic woes & difficulty bringing new drugs to market. The offer values Novem at $16.50 a share, a 22% premium to Noven's closing price Monday. The stock last traded at that level in Dec. 2007. They said Noven will likely continue as a standalone unit, operating at its current locations in Miami & NY with its existing work force. Hisamitsu President said it should be the ideal catalyst to accelerate Hisamitsu's strategic objective of increasing our U.S. presence. He cited Noven's expertise in transdermal drug development, clinical & regulatory affairs, mfg. & marketing. After completion of the deal, approved by both companies' boards, Jeffrey Eisenberg will become president & CEO of Noven. He currently serves as Noven EVP & president of the Novogyne joint venture. CEO Peter Brandt will leave after a transition period. Hisamitsu said it already owns 1.2M Noven shares, or a 4.9% stake. Noven also had positive results from its Phase 2 trial of its drug Mesafem for the treatment of hot flashes associated with menopause & will put it into Phase 3 development.