Vertex Agrees to Buy Aurora in Stock Deal

Biotech firm Vertex Pharmaceuticals Inc. agreed to buy Aurora Biosciences Corp. for about $592 million in stock to gain tools and systems used to search for drug candidates.

Vertex, based in Cambridge, Mass., said it will pay 0.62 share, or $24.34, for each Aurora share. That’s 44% more than Aurora’s closing price Friday of $16.85.

The acquisition would join Aurora’s biology technology with Vertex’s chemical approaches to drug discovery and development. That combination should help speed the development of drug candidates to combat cancer, inflammatory disorders, viral and neurological diseases and increase Vertex’s opportunities for alliances with pharmaceutical companies.

Vertex said the transaction, expected to close in the third quarter, won’t change its forecast of a net loss of $60 million to $65 million in 2001, excluding extraordinary costs associated with the merger.

Aurora, which develops systems to test drug compounds in living cells, generated $63.8 million in revenue in 2000 through collaborations and licensing agreements with drug companies and other organizations. Vertex specializes in developing chemical-based drugs to target genes and proteins linked to disease.

The combined company would have about 800 employees and $180 million in revenue this year. Vertex has one drug on the market, Agenerase, a treatment for HIV, and 12 compounds in human testing.

Vertex shares fell 69 cents to close at $38.56. They’ve fallen 46% this year. Shares of San Diego-based Aurora rose $6.35, or 38%, to close at $23.20. The shares have fallen 26% this year. Both trade on Nasdaq.