Javelin Pharmaceuticals ends sale deal with Myriad following Hospira offer

Javelin Pharmaceuticals ends deal with Myriad

CAMBRIDGE, Mass. — Javelin Pharmaceuticals is scuttling a deal to sell itself to Myriad Pharmaceuticals Inc., the company said Monday.

Javelin said last week it received a better offer from Hospira Inc. 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.

Hospira made an all-cash offer to buy Javelin for $145 million, or $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.

Myriad confirmed the deal’s termination and payments in a statement Monday. Hospira said it expects to start its tender offer for Javelin on or about Wednesday.

Shares of Javelin Pharmaceuticals Inc. rose 2 cents to $2.19 in morning trading. Hospira shares fell $1.49, or 2.6 percent, to $55.61, and Myriad shares rose 3 cents to $5.12.