Valeant Pharmaceuticals International Inc. said Tuesday it is raising its offer for eye drug maker Ista Pharmaceuticals to $7.50 per share from $6.50.
Valeant said its new offer values Ista at about $360 million. It made the revised offer to Ista on Wednesday, but the company didn't respond and has not started negotiations. The Canadian drugmaker said it could increase its bid to $8.50 per share based on a review of Ista's operations. The offer expires Jan. 31.
Ista said it will consider Valeant's new proposal as part of an ongoing review of its strategic options. The Irvine, Calif., company said it is "in dialogue with a number of parties that have expressed an interest in pursuing a strategic transaction."
"We view Valeant's willingness to raise its bid at least $2.00 per share as a clear indication of the inadequacy of its initial proposal," President and CEO Vicente Anido Jr. said.
The company also announced that it has adopted a stockholder rights plan, also known as a "poison pill." The measure will go into effect if any firm acquires 20 percent or more of Ista's shares. If that happens, other Ista shareholders will be able to buy more stock, which would dilute the acquirer's stake in the company.
Valeant went public with its $314 million offer to buy Ista in December, but Ista said the offer was too low and was not in the best interests of its shareholders. Ista shares closed at $3.89 on Dec. 15, which means the original bid was at a premium of 67.1 percent and the new offer is a 92.8-percent premium.
Ista Pharmaceuticals Inc. stock jumped 86 cents, or 11.8 percent, to $8.13 in midday trading. The stock has traded between $2.88 and $11.39 over the past year. Valeant shares rose $1.42, or 2.9 percent, to $50.61.