La Jolla Pharmaceutical Rekindles Interest In Tetraphase With Sweetened Offer

The bidding war for Tetraphase Pharmaceuticals Inc TTPH seems to be far from over.

What Happened: Tetraphase announced Monday that La Jolla Pharmaceutical Company LJPC has approached the company with an unsolicited acquisition proposal for $43 million in cash, plus an additional aggregate amount of $16 million in cash, potentially payable under contingent value rights issued in the transaction.

Tetraphase markets Xerava, an antibiotic for treating complicated intra-abdominal infections. 

After Tetraphase signed an agreement to be acquired by AcelRx Pharmaceuticals Inc ACRX, La Jolla jumped into the fray in early May, with an offer amounting to $22 million in cash and $12.5 million in CVRs.

Subsequently, privately held Melinta Therapeutics also joined the race, and surprisingly La Jolla stayed away.

After AcelRx and Melinta fought it out with bids and counter-bids, Tetraphase terminated its agreement with AcelRx June 4,and executed a merger agreement with Melinta, which had offered $43 million in cash and $16 million in CVRs.

Even as the bidding war seemed to have ended, La Jolla has re-entered the fray.

What's Next: With Tetraphase's board deeming La Jolla's offer a superior one, the company said it has given notice to Melinta regarding its intention to change its recommendation unless Melinta revises its offer on or before June 26.

TTPH, LJPC Price Action: At last check, Tetraphase shares were adding 1.52% to $2.67, while La Jolla was slipping 3.77% to $5.11. 

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