Horizon Pharma to buy Raptor Phartmaceutical in $800m deal

Dublin-based Horizon Pharma has agreed to buy Raptor Pharmaceutical in a deal valued at around $800m.

Under the terms of the deal, which is expected to close in the fourth quarter, Horizon will pay $9.00 per share in cash.

Horizon’s president and chief executive officer, Timothy P. Walbert, said: "The proposed acquisition of Raptor furthers our commitment to helping people with rare diseases and is a significant step in advancing our strategy to expand our rare disease business.

“Along with the potential for accelerated revenue growth, the addition of Raptor strengthens our US orphan business and provides a platform to expand our orphan business in Europe and other key international markets.”

The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to be accretive to earnings before interest, taxes, depreciation and amortisation in 2017.

Horizon said the deal adds Raptor’s Procysbi delayed-release capsules and Quinsair global rights to its portfolio.

Procysbi is approved in the US for the treatment of nephropathic cystinosis, a rare metabolic disorder, while Quinsair is a proprietary inhaled formulation of levofloxacin, approved in the European Union and Canada for the management of chronic pulmonary infections in adult patients with cystic fibrosis.

Raptor shares surged 18% to $8.82 in pre-market trade.