Bayer to Buy Conceptus in $1.1B Birth Control Deal

by Christopher Freeburn | April 29, 2013 11:29 am

Bayer to Buy Conceptus in $1.1B Birth Control Deal

bayerlogo 294x300 Bayer to Buy Conceptus in $1.1B Birth Control Deal[1]Shares of Conceptus (NASDAQ:CPTS[2]) surged almost 20% in Monday morning trading after Bayer AG (PINK:BAYRY[3]) said it would buy the birth control products maker[4].

The German pharmaceutical giant is offering $31 a share for Conceptus, valuing the acquisition at $1.1 billion, the Associated Press noted.

Not surprisingly, Conceptus shares jumped to just under $31 a share. The California-based company produces a permanent contraceptive treatment under the brand nameĀ Essure. The treatment uses metal and polyester bands to constrict a woman’s fallopian tubes, preventing pregnancy.

Regulators will have to approve the deal.

The purchase would add to Bayer’s existing range of contraceptive products. Conceptus has a workforce of roughly 300. The companies expect to finalize the merger later this year.

In November, Bayer acquired Utah-based vitamin producer Schiff Nutrition International[5] for $1.1 billion.

Shares of Bayer rose fractionally in over-the-counter trading on Monday.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/04/bayerlogo.jpg
  2. CPTS: http://studio-5.financialcontent.com/investplace/quote?Symbol=CPTS
  3. BAYRY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAYRY
  4. buy the birth control products maker: http://hosted.ap.org/dynamic/stories/E/EU_BAYER_CONCEPTUS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-04-29-07-47-34
  5. acquired Utah-based vitamin producer Schiff Nutrition International: http://investorplace.com/2012/10/bayer-to-buy-schiff-nutrition-for-1-1b/

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