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Horizon to buy Hyperion Therapeutics for $1.1bn

Irish pharmaceutical firm Horizon Pharma has entered into an agreement to acquire all of the issued and outstanding shares of US-based Hyperion Therapeutics for about $1.1bn.

Under the deal, the Irish firm has offered to pay $46 a share for Hyperion, representing a 35% premium to the volume weighted average price for its shares for the last 60 days.

Boards of directors from both the organizations have unanimously approved the proposed transaction, which would give Horizon access to two orphan disease products, Ravicti and Buphenyl.

The acquisition will leverage as well as expand the existing infrastructure of Horizon’s orphan disease business.

Horizon Pharma chairman, president and chief executive officer Timothy Walbert said: "This transaction will be immediately accretive to adjusted EPS and we expect the contribution of RAVICTI and BUPHENYL in 2016 will add approximately $100m to our adjusted EBITDA, including cost synergies contributing greater than $50m."

Hyperion Therapeutics president and chief executive officer Donald Santel said: "During the last two years, we have solidified our position in the orphan disease space and made significant progress in bringing life-changing medicines to people with urea cycle disorders."

Ravicti and Buphenyl are designed to treat urea cycle disorders (UCDs), which are a collection of inherited metabolic disorders, impacting around 2,100 people in the US with about 1,100 diagnosed.

Subject to customary conditions, the transaction is expected to be completed in the second quarter of 2015.