Myogen investors are in line for a big payout as a result of Gilead Sciences Inc.’s proposed acquisition of the company for $52.50 a share.
“The sale will create a lot of wealthy people, and hopefully that wealth will cycle back into new companies and investment in new companies,” said Denise Brown, executive director of the Colorado Bioscience Association. “(J. William) Freytag and the senior management team are very bankable.
“Because of their success with Myogen, whatever they decide to do next will have a lot of investor interest.”
One of Myogen’s founders has already started a new venture. Michael Bristow launched Denver-based biotech Arca Discovery in 2004.
Freytag, chairman, chief executive and president of Myogen, received a salary of $357,000 in 2005 and a bonus of $95,200.
But Freytag also had exercisable stock options valued at $17.9 million at the end of 2005, based on a stock price of $30.10 minus the exercise price. Those shares are now valued at $52.50 apiece.
Most of the company’s main investors are institutional investors, according to Derek Cole, director of investor relations for Myogen.
Investment management firm T. Rowe Price holds 5.8 million shares, or 13 percent of the company, valued at more than $300 million. Billionaire philanthropist George Soros owns about 3.5 percent of Myogen. Soros once owned 7 percent but sold half his stake in 2005.
1Staff writer Kimberly S. Johnson can be reached at 303-954-1088 or kjohnson@denverpost.com.
