PALO ALTO, Calif. (AP) — Jazz Pharmaceuticals Inc. is buying privately held Azur Pharma Ltd. in an all-stock deal that will create a specialty pharmaceutical company incorporated in Ireland.
Shareholders of Jazz will own nearly 80 percent of the company, to be renamed Jazz Pharmaceuticals plc. Jazz said its chairman and CEO Bruce Cozadd will keep those titles, while the Azur Pharma chairman and CEO will join the Jazz board.
The combined company is expected to have revenue of more than $475 million in its first year, Jazz said. It will have no debt and about $250 million in cash at closing.
In the U.S. Azur Pharma sells 10 drugs for the central nervous system and women’s health. It expects sales of $95 million to $100 million this year.
The deal needs antitrust approval in the U.S. Jazz said affiliates that hold 43 percent of its stock and holders of 99 percent of Azur Pharma shares support the deal. It is expected to close in the first quarter of next year.
Jazz makes Xyrem for narcolepsy patients and Luvox CR to treat obsessive compulsive disorder. Last year, it earned $32.8 million on sales of $173.8 million.
Jazz shares rose 85 cents, or 2 percent, to close at $43.74.