Eisai Surprise Winner in MGI Auction

Everyone knew that MGI Pharma was up for sale, but few expected mid-cap Japanese firm Eisai to emerge victorious. Eisai pushed its offer up to $41-per-share, all cash, even though there was only one other, non-definitive, offer on the table. The $3.3 billion deal nabs Eisai two records: the largest foreign acquisition by any Japanese pharma, and the year's largest specialty pharma purchase.

Everyone knew that MGI Pharma Inc. was up for sale, but few if any expected mid-cap Japanese pharma firm Eisai Co. Ltd. to emerge victorious last month from the formal auction run by Lehman Brothers. [See Deal] Eisai put up $3.3 billion, all cash—a healthy 39% premium to MGI’s closing share price the day before it announced it was seeking strategic alternatives, and about ten times MGI’s 2006 sales—and in doing so nabbed two records: the largest foreign acquisition by any Japanese pharma, and the year’s largest specialty pharma purchase.

Still, although Eisai was up against at least seven other interested parties, only one of these actually made an offer,...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Business Strategy

More from In Vivo

Rising Leaders 2025: Doxie Jordan, From UNC Graduate To Global Market Strategist

 
• By 

Bristol Myers Squibb executive Doxie Jordan discusses his path to global commercial leadership and the principles guiding pharmaceutical market strategy

Podcast: Brain+ CEO Discusses “Groundbreaking” Potential Of CST Assistant For Dementia Patients

 

Devika Wood, CEO of Brain+, explains the importance of developing health tech solutions for dementia and the growing need to both raise awareness and improve overall access to nondrug interventions like CST.

Behind The Buyout: Dispatches From The Dealmaking Table

 
• By 

In a challenging funding environment for biopharma, strategic dealmaking has become a critical growth engine. In Vivo explores what it truly takes to navigate high-stakes acquisitions and partnerships, drawing on insights from seasoned industry leaders.