MGI Moves Into Acute Care with Guilford Acquisition
Executive Summary
MGI Pharma Inc.'s recent acquisition of Guilford Pharmaceuticals Inc. should allow the oncology specialist to smoothly branch out into acute care while simultaneously adding support for its most important cancer product. Arguably the biggest deal driver is Guilford's Phase III anesthetic propofol prodrug Aquavan-ironically the same drug which faltered in development earlier in 2005, leading to the latest in a string of disappointments for Guilford, a substantial setback in valuation, and an affordable price tag for MGI.
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