Astellas vies for OSI Pharmaceuticals

TOKYO A Japanese drug maker hopes to buy up a pharmaceutical company based in New York state.

Astellas Pharma announced Monday that it had made a $3.5 billion tender offer for all outstanding shares of common stock in Melville, N.Y.-based OSI Pharmaceuticals. Astellas said the offer, amounting to $52 a share, was a premium of more than 40% over OSI’s Friday closing price of $37.02.

OSI develops and sells drugs for treating cancer, diabetes and obesity, such as the lung and pancreatic cancer drug Tarceva (erlotinib), which it co-markets with Genentech, now a part of Switzerland’s Roche Group.

OSI said in a company statement that it would review the offer, but noted that it turned down an offer of $52 per share that Astellas made in February, saying it “significantly undervalues” the company.