for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Knight Therapeutics to purchase Biotoscana in $281 million deal

SAO PAULO (Reuters) - Knight Therapeutics GUD.TO will buy Brazilian pharmaceutical company Biotoscana Investments GBIO33.SA in a deal valued at 1.16 billion reais ($281 million) that will create a pharmaceutical platform in fast growing markets in Latin America.

In a securities filing on Monday, Knight said it will acquire a 51% interest in Biotoscana for 596 million reais ($144 million) from controlling shareholders Advent International and Essex Woodlands.

The Canadian company will pay 10.26 reais per share, with an implied 22% premium over 30-day average price of Biotoscana shares.

Knight will launch a mandatory tender offer to acquire the remaining 49% from public shareholders in similar terms.

Shares of Knight rose 5 percent in Toronto trading, while those of Biotoscana were up 5.4% at 10.26 reais in mid-morning trading in Sao Paulo.

Knight Chief Executive Jonathan Ross Goodman said in a statement the “transformational deal,” with Biotoscana’s focus on oncology and onco-hematology. The combined company will operate in 10 countries in the region, the statement said.

Talks between Biotoscana’s shareholders and Knight Therapeutics were reported earlier this month.

Reporting by Tatiana Bautzer; editing by David Evans and Steve Orlofsky

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up