Horizon Pharma to buy Raptor Pharma for US $800mn

Horizon Pharma Plc said it has agreed to buy Raptor Pharmaceutical Corp for nearly US $800 million to strengthen its portfolio of rare disease drugs.

The specialty pharmaceutical company said it would offer US $9 per Raptor share, which is a 21 percent premium to Raptor’s Friday close.

Horizon Chief Executive Tim Walbert has been vocal about his desire to expand Horizon through acquisitions at a time when valuations throughout the life sciences sector are down significantly from their 2015 highs.

Walbert has said he wants to increase Horizon’s focus on rare diseases, which would pivot the company away from primary care, where pricing pressure has been more pronounced.

Horizon intends to finance the Raptor transaction through US $675 million of external debt along with cash on hand and expects the deal to close in the fourth quarter.

Earlier this year, Horizon acquired Crealta Holdings for US $510 million, adding its gout treatment to a portfolio of drugs focused on rare diseases, rheumatology and primary care.

MTS Health Partners and Citigroup Global Markets are co-lead financial advisers to Horizon, while Cooley and Mccann Fitzgerald are its legal advisers.

Centerview Partners and Leerink Partners are Raptors’ financial advisers, and its legal adviser is Latham & Watkins.

Raptor’s stock was up about 20 percent at US $8.92 premarket, just shy of the offer price.