EUSA Pharma to acquire Cytogen for nearly $23 million

PRINCETON, N.J. EUSA Pharma Tuesday entered into a definitive agreement to acquire all the outstanding shares of Cytogen Corp. for $22.6 million.

Cytogen currently has three oncology and pain control products in the U.S. market: Caphosol, which is used to treat oral mucositis; ProstaScint, which evaluates the extent and spread of prostate cancer; and Quadramet, for the treatment of pain in patients whose cancer has spread to their bones. In 2007, it posted revenue of $20.2 million and a net loss of $25.7 million.

Bryan Morton, chief executive officer of EUSA Pharma, said the acquisition will help the company complete the building of its transatlantic commercialization infrastructure. He also described the deal as “fitting perfectly” with his company’s focus on oncology and pain control, according to the Philadelphia Business Journal.

Under the terms of the all-cash deal, Cytogen shareholders will receive a 32 percent premium on the price of shares as of the close of trading Monday, or 62 cents per share.