WuXi PharmaTech, a China-based research and development firm, has signed a merger agreement with New WuXi Life Science and its fully owned subsidiary WuXi Merger in an agreement worth $3.3 billion.
The firm will receive 5.75 per ordinary share and 46 per American depository share, which represents a 16.5 per cent premium over the closing price of $39.50 per ADS – as quoted on the New York Stock Exchange in April.
The Life Science division will subsequently be owned by a consortium, comprised of affiliates or funds managed by Ally Bridge Group following the completion of the transaction.
The company, which has operations in both China and the US, is currently developing a platform which will offer clinical diagnostic services straight to physicians across any length. The merger has been unanimously approved by the company’s board of directors, and is expected to close during the fourth quarter of 2015.