EUSA Pharma Inc, a transatlantic specialty pharmaceutical company focused on oncology, pain control and critical care, has entered into a definitive agreement to acquire Cytogen Corporation for $22.6 million. The Cytogen board has approved the cash merger agreement and resolved to recommend that the company’s shareholders adopt the agreement.

With its purchase of Cytogen, the enlarged EUSA group will acquire a 40-strong specialist oncology sales force and three marketed products:  Caphosol, ProstaScint and Quadramet.

To meet the acquisition consideration and fund further investments, EUSA Pharma has raised more than $50 million from investors, led by international venture capital firm TVM Capital.

Under the terms of the all-cash merger agreement Cytogen shareholders will receive 62 cents per share, representing a 35-percent premium on the company’s share price at the close of trading March 10, and valuing the company at $22.6 million.

Last year, Cytogen’s revenues amounted to $20.2 million, with the company making a net loss of $25.7 million for the year.

EUSA intends to apply to delist all Cytogen’s issued shares from the NASDAQ stock exchange.