Despite of the antagonistic nature that made the shareholders panic, the bid was at last, in favor of Astellas Pharma Inc., who approved to procure OSI Pharmaceuticals Inc. for $4 billion in cash. This deal hoisted the bid by 11% to gain the world’s fourth best-selling lung cancer medicine.

Astella has very much outperformed a meltdown in the broader souk, which has been apparent from today’s move in its shares: Down 0.3%. Although there was an anxiety that Astellas would wind up overpaying for its American target, yet, they indeed secured a deal at 10% more than its preliminary offer price. This came as a relief for all shareholders!

Foreseeing the competition from generic drugs for its top two revenue sources—immunosuppressant Prograf and prostate treatment Flomax; the company forecasted that by March 2011 earnings will be more than 37% lower than they were in March 2009. Thus, this deal has given Astellas a much-needed offset to its fast-eroding profits.

When, presently the deal’s price tag of $4 billion is offering plenty of comfort, a better sense of Astellas's plans can only be judged by the investors next week, when the firm outlines its mid-term strategy.

In the way of cost savings, Astellas wouldn’t be able to generate much from this deal. Therefore, the key to success will lie in the way how it develops OSI's drug pipeline, in particular in expanding use of cancer drug Tarceva, and uses OSI's experience shepherding drugs through the U. S. Food and Drug Administration's approval process.