OrbiMed Advisors: Astellas should raise bid for OSI

NEW YORK One of the biggest holders of OSI Pharmaceuticals’ stock has said Japanese drug maker Astellas Pharma needs to increase its bid, according to published reports.

BusinessWeek reported Friday that OrbiMed Advisors, the fifth-largest stockholder in OSI, said Astellas would have to raise its bid by 15%, from $52 a share to $60. OSI had rejected a previous $52-per-share bid as too low, saying it undervalued the company.

Astellas renewed its bid for the company Monday, making a tender offer for OSI, which markets the cancer drug Tarceva (erlotinib) with Genentech, now part of Roche.