Paladin Labs Inc. , despite a higher bid from another suitor, is extending for almost two weeks its hostile, $56.7-million takeover bid for Afexa Life Sciences Inc. , maker of the popular Cold-FX flu remedy.
Paladin did not mention the $76-million bid by Valeant Pharmaceuticals International Inc. — one that has received the approval of the Afexa board — in announcing the extension of its offer until 8 p.m. ET on Sept. 28.
The offer had been set to expire at 8 p.m. ET on Thursday and Paladin said the extension allows its to remain open until after the Alberta Securities Commission hearing into Paladin's application to cease trade Afexa's two shareholder rights plans
“All other terms of the offer remain unchanged as Paladin continues to consider its alternatives,” the Montreal-based company said in a release.
Afexa gave its stamp of approval to the Valeant bid late last week, saying it trumps the Paladin offer in value and has been deemed fair by independent advisers.
“The board has been aggressively pursuing a variety of strategic alternatives and has determined that supporting the Valeant offer on these terms is in the best interests of Afexa,” the company said.
Edmonton-based Afexa has until Sept. 29 to entertain any competing bids that might arise.
Valeant is a multinational, specialty pharmaceutical company that develops, manufactures and markets a range of drugs.
Paladin is a specialty pharmaceutical company focused on acquiring or in-licensing pharmaceutical products for the Canadian market.