Dive Brief:
- 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.
Dive Insight:
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.