Alexion to buy Synageva BioPharma in $8.4B rare disease megadeal
- Biopharma's M&A frenzy is going strong as Alexion Pharmaceuticals announced on Wednesday that it would buy the rare disease drug maker Synageva BioPharma for $8.4 billion in a cash-and-stock deal.
- Alexion is offering $225.92 per share ($115 in cash and 0.6581 of its shares per each Synageva share), which is more than double Synageva's Tuesday closing price.
- If the deal closes, Alexion will nab the therapy Kanuma, an orphan drug used to treat Lysosomal Acid Lipase Deficiency, which involved fatty buildup in the blood and liver.
Alexion's lead product is Soliris, a pricey specialty blood disorder med that has massive profit margins. According to Reuters, adding Synegeva's products to Alexion's portfolio is expected to save Alexion $150 million in 2017 and add to its profits in 2018.
The deal's financing is also on solid ground, with $3.5 billion in committed financing from Bank of America Merrill Lynch and JPMorgan.