Alexion Pharma's $8.4 billion acquisition of synageva Biopharmaceutics

Source: Ding Xiangyuan, 2015-05-08 pharmaceutical company alexion, said that in order to expand its rare drug product line, it will purchase synageva biopharmaceutical company for us $8.4 billion Alexion acquired synageva for $225.92 in cash plus shares, more than double synageva's closing price of $95.87 on the 5th Synageva's share price was $216 in day ahead trading, while alexion's share price fell 4% to $162 Manufacturers of drugs for rare diseases are often attractive because they often offer a high premium for their products The deal will give alexion access to kanuma, synageva's treatment for a rare disease known as lysosomal acid lipase deficiency, in which the blood and liver of patients accumulate fat and cause unpredictable complications, with the potential for premature death Kanuma's listing application is under review in the US and Europe This is the latest deal in a series of M & A events this year Recent deals involving drugs for rare diseases include Teva's $3.5 billion acquisition of auspex in March and shire's $5.2 billion acquisition of NPs in January Alexion is trading in synageva cash of $115 per share and 0.6581 of its own shares By 2018, the deal is expected to increase alexion's profits and save $150 million in costs in 2017, the two companies said in a statement Alexion has received a $3.5 billion commitment from Merrill Lynch and Morgan for the deal Lazard and JPMorgan are financial advisors to alexion, while synageva's is Goldman Sachs Wachtell Lipton Rosen & Katz is the legal counsel of alexion, while Sullivan Cromwell and ROPS and gray are the legal counsel of synageva.