CAMBRIDGE, Mass. (AP) -- Javelin Pharmaceuticals Inc. said Monday it received a better acquisition offer from Hospira Inc., and it plans to end a competing bid made by Myriad Pharmaceuticals Inc.
Javelin, which is based in Cambridge, Mass., said Hospira made an all-cash offer to buy its outstanding shares for $2.20 per share. Javelin also will be allowed to borrow up to $4.5 million from Hospira to fund operating activities before the deal closes.
Hospira, based in Lake Forest, Ill., also will provide $8.3 million to repay the principal and accrued interest under a similar deal Javelin made with Myriad and $4.4 million for a termination fee and other expenses to get out of the Myriad offer.
Javelin said it will enter the agreement with Hospira if Myriad does not "favorably adjust the terms of its offer."
In December, Myriad, which is based in Salt Lake City, had offered to buy all outstanding shares of Javelin common stock in exchange for Myriad stock.
Myriad said Monday it has until April 16 to respond. The company said it believes its existing offer for Javelin is fair to stockholders of both companies and offers "substantial long-term strategic value to the Javelin shareholders." It has several business days to consider a response.
Myriad shares rose 49 cents, or nearly 11 percent, to $5.02 in late morning trading Monday. Hospira shares, meanwhile, fell 7 cents to $56.18. Javelin shares rose 82 cents, or 61 percent, to $2.16.