Horizon Pharma acquires Hyperion for $1.1bn

Shares in Horizon Pharma jumped by nearly 15% after confirming it has acquired Hyperion Therapeutics for $1.1bn.

The Irish biopharmaceutical company paid $46 a share for Hyperion, which represents a premium of 35% to Hyperion's volume weighted average price for the trailing 60-days.

"The Hyperion acquisition will expand and diversify our product portfolio by adding two complementary orphan disease products, Ravicti and Buphenyl, and leverage as well as expand the existing infrastructure of our orphan disease business," said Timothy Walbert, chairman, president and chief executive officer of Horizon Pharma.

Ravicti and Buphenyl are medicines for people with urea cycle disorders, a collection of inherited metabolic disorders, and their contribution is expected to add $100m to its adjusted earnings before interest, taxes, depreciation, and amortization in 2016.

Hyperion's chief executive and president Donald Santel added that the merger will help its business to expand the reach of the medicines thanks to Horizon's orphan business unit.

Shares were up 14.63% to 25p on Monday.