Deal Reached to Buy CoLucid

Eli Lilly & Co. reached an agreement to acquire CoLucid Pharmaceuticals Inc. for about $960 million, adding a potential near-term launch to its late stage drug pipeline.

Under the deal, Lilly will pay $46.50 a share for CoLucid, a 33% premium to the company's share price at Tuesday's close.

CoLucid is a biopharmaceutical company developing an oral treatment for migraine, Lasmiditan, with data expected from a late stage trial this year that could set the stage for U.S. regulatory approval for the drug in 2018.

--Joshua Jamerson

MALLINCKRODTDrugmaker Settles Antitrust Case

Irish drugmaker Mallinckrodt PLC and a U.S. subsidiary will pay $100 million and agree to other conditions to settle government antitrust allegations they unlawfully prevented competition for Acthar, a drug that has seen enormous price spikes in recent years.

The Federal Trade Commission and attorneys general from New York and four other states alleged the U.S. unit, formerly known as Questcor Pharmaceuticals, violated antitrust laws when it acquired the rights to a competing drug, Synacthen, that threatened its monopoly in the U.S. Federal and state officials said the agreement would allow for the competition that Questcor sought to prevent.

Mallinckrodt acquired Questcor for $5.9 billion in 2014.

Mallinckrodt confirmed it had reached a settlement and said it would comment further "at the appropriate time."

--Brent Kendall and Peter Loftus


Chip-Unit Spinoff Under Review

Toshiba Corp. said Wednesday it was considering a spinoff of its profitable semiconductor unit, a plan that could help it raise cash in response to a multibillion-dollar write-down at its nuclear business.

A spinoff would help the unit compete with Samsung Electronics Co. in an industry in which billions of dollars are needed to stay abreast of technological changes.

A decision could come as early as Friday when Toshiba plans to brief its banks on how much the nuclear troubles will cost, two people familiar with the matter said.

A Toshiba statement, in response to reports in local media including the Nikkei newspaper about the possible spinoff, said the plan was at an advanced stage of deliberation but no final decisions have been made.

--Takashi Mochizuki

(END) Dow Jones Newswires

January 19, 2017 02:47 ET (07:47 GMT)

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