Doylestown’s EUSA buys Cytogen for $22.6M

EUSA Pharma Inc. said today it will buy specialty-pharmaceutical company Cytogen Corp. of Princeton for $22.6 million.

EUSA Pharma, which has U.S. operations in Doylestown, said it raised more than $50 million to fund the acquisition and other investments, led by TVM Capital in Germany.

EUSA, which was founded in Oxford, England, said the acquisition would expand its commercial presence in the U.S. market. Cytogen has three cancer and pain control treatments sold in the United States, as well as a 40-person U.S. oncology sales force.

Under terms of the agreement, Cytogen shareholders will receive 62 cents a share, representing a 35 percent premium on the company's closing share price yesterday.

In 2007, Cytogen had revenues of $20.2 million and a net loss of $25.7 million.

"EUSA has built a strong European organization covering more than 20 countries and marketing a portfolio of six specialty pharmaceuticals," said Bryan Morton, EUSA chief executive officer. "Cytogen's products and U.S. infrastructure are the ideal complement to our business."

EUSA, which has products for cancer, pain control and critical care, said it will acquire all the outstanding shares of Cytogen, a publicly-traded company. After the acquisition, EUSA plans to have Cytogen's shares delisted from the Nasdaq.

Cytogen shares were up 11 cents, or 24.5 percent, to 57 cents in midday trading on the Nasdaq.