Tripos to Purchase Pharsight
The acquisition allows the Tripos, which was acquired last year (see IBO 11/30/06), to enter the market for clinical trial software, a faster growing market than the market for its current products for drug discovery and development. For the fiscal year ended in March, Pharsight’s revenues rose 13.0% to $28.3 million, and operating income fell 14.9% to $1.4 million. Pharsight reported more than 1,000 customers in 2008, with Pfizer representing 10% of revenues and Daiichi Sankyo accounting for 7%.
St. Louis, MO and Mountain View, CA 9/9/08—Informatics company Tripos has entered into a definitive agreement to acquire publicly held Pharsight for approximately $57 million in cash. Pharsight shareholders will receive $5.50 per outstanding share of common stock, a 29% premium over the average 30-day closing price as of September 8. Pharsight offers software and services for computer-based simulation, statistical and data analysis, and data repositories for drug development. “The combined companies will provide software products and scientific services over an expanded market, from discovery to phase III, approval and post marketing,” stated Shawn O’Connor, chairman and CEO of Pharsight. The acquisition is subject to stockholder approval. Pharsight’s directors, officers and others representing approximately 33% of the outstanding common stock support the agreement. The deal is scheduled to close in the fourth quarter.
