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Galenica To Acquire Relypsa For $32 A Share

Galenica To Acquire Relypsa For $32 A Share - RLYP

Galenica Group and Relypsa Inc RLYP revealed that they reached a definitive agreement by which the former would acquire Relypsa for $32.00 a share or a total of about $1.53 billion.

According to the company, this transaction further strengthens Galenica's Business unit, Vifor Pharma. This was due to the complete global rights of the potassium binder Veltassa for oral suspension, as well as, improves its growing position as a global specialty pharmaceutical company.

Both the companies expect the transaction to be completed in the third quarter of the current year.

Related Link: What's The Market Potential For Relypsa Now That AstraZeneca's ZS-9 Is Indefinitely On Hold?

Relypsa President and CEO, John Orwin, commented, "We are excited to announce this transaction today, which we believe offers significant and immediate value to our shareholders. We look forward to continuing our mission of improving patients' lives as part of the Vifor Pharma organization and are confident that our combined expertise, resources and commercial strength will help us build on the significant progress we have made since launching Veltassa in the United States."

The acquisition reiterated Galenica commitment to split the Galenica Group into two independent listed companies. That would be partially funded by equity proceeds to be raised in concurrence with the envisaged division of the Galenica Group next year.

The transaction brings Vifor Pharma a dedicated commercial organization in the United States and global rights to Veltassa, a potassium binder for the treatment of hyperkalemia.

Following the news, Relypsa's stock jumped 58 percent in the pre-market on Thursday.

© 2016 Benzinga does not provide investment advice. All rights reserved.