OSI, Eyetech complete $935 million merger

Melville, NY-OSI Pharmaceuticals has completed its $935 million acquisition of Eyetech Pharmaceuticals Inc. after reviewing recent data by Eyetech competitor Genentech Inc.

The deal, which was finalized Nov. 14, did not help OSI's stock price, which continued to fall from $30.35 per share on Nov. 10 to $24.62 on Nov. 18. OSI stock price, at a high of $41.03 before the Aug. 21 merger announcement, has never recovered. Meanwhile, Eyetech shares rose $1.57 to $18.19 in mid-day trading on Nov. 14.

OSI shareholders have been concerned about Genentech's ranibizumab (Lucentis) drug, which could compete with Eyetech's pegaptanib sodium (Macugen) as a treatment for age-related macular degeneration. Analysts also expressed concern about the future of OSI's relationship with Genentech, which also collaborates with OSI on erlotinib (Tarceva), a cancer drug.