New York: Alexion Pharmaceuticals will buy rival Synageva BioPharma in an $8.4 billion cash-and-stock deal that will bolster Alexion`s business in treatments for rare diseases, the US companies announced Wednesday.
Alexion`s takeover offer is aggressive: It will pay $115 in cash and 0.6581 Alexion shares for each share of Synageva, amounting to $230 in cash and stock. That represents a 140 percent premium to Synageva`s closing share price Tuesday at $95.87.
"Synageva is an ideal strategic and operational fit for Alexion that aligns with what we know well and do well -- providing life-transforming therapies to an increasing number of patients with devastating and rare diseases," said David Hallal, Alexion chief executive, in a statement.
The Alexion acquisition will add Synageva`s Kanuma treatment for patients suffering from Lysosomal Acid Lipase Deficiency, a rare and life-threatening disease caused by genetic mutations that lead to a buildup of fatty material in the liver and other tissues.
Kanuma is expected to be launched on the global market this year, Hallal said. Kanuma is under a priority review for approval by US and European health authorities.
Alexion`s acquisition of Synageva`s treatment pipeline "creates the most robust rare disease pipeline in biotech," the companies said.
Alexion projected the combined company would achieve annual cost savings that reach at least $150 million in 2017. The transaction is expected to close in mid-2015.
Shares in Synageva shot up 112.8 percent to $204.04 in opening Nasdaq trade, while Alexion dropped 9.6 percent to $152.32.
