Late last month, life sciences company Monogram Biosciences (MGRM) announced that it will be acquired by clinical laboratory firm Laboratory Corp. of America Holdings (LH) for $106.7 million, or a total enterprise value of approximately $155 million at the end of March 31. The acquisition is expected to close in the third quarter of 2009.
As per terms of the agreement, LabCorp’s acquisition subsidiary Mastiff Acquisition Corp. has commenced a tender offer to purchase all outstanding shares of Monogram Biosciences for $4.55 per share in cash, without interest. Following completion of the tender offer, Mastiff and Monogram are expected to merge. The non-purchased shares will be converted into rights to receive equivalent cash value as in the tender offer.
Monogram is committed to advancing personalized medicine and improving patient outcomes through the development of innovative products that guide and target the most appropriate treatments. We are optimistic about its HIV test products and the potential of its VeraTag Assay for cancer test.
We believe that the acquisition will be positive for both companies. It is expected to strengthen LabCorp’s leadership in infectious disease and oncology and take forward its advancement in personalized medicine by utilizing Monogram’s strong market presence. This deal should strengthen Monogram’s cash position substantially. Further, the transaction should result in improved offerings for customers of both companies getting.
Currently, we have a Hold rating on Monogram shares.
Read the full analyst report on “MGRM”
Read the full analyst report on “LH”
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