Horizon Pharma will spend about $800 million to buy Raptor Pharmaceutical and expand its portfolio of rare disease treatments, a growing area of focus for drugmakers. For the next year, Horizon would offer the outlook in the first quarter of 2017.
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The stock soared US$1.51 to almost US$9 as the pair said Ireland-based Horizon would pay US$9 a share for Raptor, valuing the latter at about US$800mln. As of 10:44 AM, HZNP stock is up 4.35% at $18.01, whereas RPTP stock has gained 20.34% to trade at $8.97.
Horizon’s chief executive, Tim Walbert, has been vocal about his desire to expand Horizon through acquisitions at a time when valuations in the life sciences sector are down significantly from their 2015 highs.
Horizon past year launched and abandoned a hostile bid to acquire peer Depomed Inc, after a California court ruled that there was a risk that the overture was based on improper use of confidential information.
On September 12, 2016, Raptor announced it had signed a definitive merger agreement with Horizon Under the terms of the agreement, Horizon will pay $9.00 per share in cash for each share of Raptor common stock.
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With this transaction, Horizon Pharma will receive access to Procysbi-a treatment for rare metabolic disorder nephropathic cystinosis-and Quinsair, which is a drug given to cystic fibrosis patients. MTS Health Partners and Citigroup Global Markets were Horizon Pharma’s main advisers on the transaction. On the other hand, Raptor has hired Leerink Partners LLC and Centerview Partners LLC as its financial advisors, while Latham & Watkins LLP are its legal advisors.
