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Horizon Pharma Inc. (Nasdaq: HZNP) stock jumped more than 15% today (Wednesday) after it announced it will buy privately held Vidara Therapeutics International Ltd. in a cash and stock deal valued at $660 million.
The Deerfield, Ill.-based specialty pharmaceutical firm said the resulting company, Horizon Pharma PLC, will be 26% owned by shareholders of Vidara, which has operations in Dublin and the United States. Vidara shareholders will also share some $200 million in cash.
Horizon confirmed boards of both companies have unanimously approved the merger, which is expected to close by midyear. The newly combined company will be headed by Horizon Chairman and Chief Executive Officer Timothy P. Walbert. Horizon Pharma PLC is expected to generate full-year revenue of $250 million to $265 million.
The deal adds Vidara's genetic disorder drug Actimmune to Horizon's four drugs used to treat various forms of osteoarthritis and rheumatoid arthritis.
Actimmune is approved by the Food and Drug Administration for use in children and adults with chronic granulomatous disease and severe, malignant osteopetrosis. The treatment is targeted at reducing the frequency and severity of serious infections associated with CGD and for delaying time to disease progression in patients with SMO.
Vidara bought Actimmune from InterMune Inc. (Nasdaq: ITMN) in 2012 for $55 million. Last year, the drug generated $58.9 million in sales.
"The addition of Actimmune complements our commercial business model focused on targeted promotion to primary care physicians and specialists," Walbert said in a statement. "The combined company would have a portfolio of four proprietary products and an international platform that builds on our strategy of organic growth and acquisitions. We look forward to working with the Vidara team to bring our companies together to accelerate the creation of shareholders value."
But there is more Horizon sees ahead – and something that will benefit HZNP stock investors in the long run…