Horizon Therapeutics to buy Viela Bio for $3.1bn

Under the terms of the deal, which is expected to close by the end of the first quarter, Horizon will pay $53.00 per share.

Horizon chairman, president and chief executive officer Tim Walbert said: "This acquisition represents a significant step forward in advancing our strategy - to expand our pipeline in order to accelerate our growth over the long term.

"Adding Viela’s research and clinical development capabilities along with its deep, mid-stage biologics pipeline to our seasoned R&D and commercial teams, advances our transformation to an innovation-driven biotech company where we will build on the success of Tepezza and Krystexxa to bolster our long-term growth trajectory. We intend to maximise the full potential of Viela’s pipeline, including the pursuit of additional future indications."

Tepezza is indicated for the treatment of thyroid eye disease while Krystexxa is for chronic gout.

Horizon expects the transaction to reduce its adjusted earnings before interest, tax, depreciation and amortisation by approximately $140m in 2021, nearly all of which is attributable to increased research & development investment.

Maryland-based Viela is focused on the discovery, development and commercialisation of novel treatments for autoimmune and severe inflammatory diseases.

AstraZeneca announced separately that it has agreed to divest its 26.7% stake in Viela as part of the deal.