Healthcare Industry News: NovaCardia
News Release - September 11, 2007
Merck & Co., Inc. Announces Completion of NovaCardia, Inc. AcquisitionWHITEHOUSE STATION, N.J.--(HSMN NewsFeed)--Merck & Co., Inc. today announced that it has successfully completed the acquisition of NovaCardia, Inc., a privately held clinical-stage pharmaceutical company focused on cardiovascular disease. This acquisition adds rolofylline (KW-3902), NovaCardia's investigational Phase III compound for acute heart failure to Merck's pipeline.
Merck acquired all the outstanding equity of NovaCardia for a total purchase price of $366.4 million (including $16.4 million of cash and investments on hand at closing), which was paid through the issuance of 7.3 million shares of Merck & Co., Inc. common stock to the former NovaCardia shareholders. Approximately $325 million of the purchase price will be accounted for as in-process research and development costs, which is expected to result in a charge to Merck's third quarter earnings of 15 cents per share.
Merck will provide further details about its third quarter financial performance as well as its full year guidance as part of the Company's regular third quarter earnings release on Oct. 22, 2007.
Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck currently discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The Company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service. For more information, visit www.merck.com.
This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. The forward-looking statements may include statements regarding product development, product potential or financial performance. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect Merck's business, particularly those mentioned in the risk factors and cautionary statements in Item 1A of Merck's Form 10-K for the year ended Dec. 31, 2006, and in its periodic reports on Form 10-Q and Form 8-K, which the Company incorporates by reference.
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