Alexion agrees to buy Synageva BioPharma for $8.4bn

The transaction, which has been unanimously approved by Boards of Directors from both companies, will strengthen Alexion’s business in developing and commercializing transformative therapies for patients with devastating and rare diseases.

Alexion has agreed to pay $115 in cash and 0.6581 Alexion shares for each share of Synageva, amounting to $230 in cash and stock.

Alexion CEO David Hallal said: "Synageva is an ideal strategic and operational fit for Alexion that aligns with what we know well and do well — providing life-transforming therapies to an increasing number of patients with devastating and rare diseases.

"With strong ongoing Soliris growth in PNH and aHUS worldwide, and the anticipated 2015 global launches of Strensiq and Kanuma, we will accelerate and diversify our revenue growth.

"We are excited to create the most robust rare disease pipeline in biotech across a range of therapeutic modalities."

The transaction is expected to be completed in mid-2015 and Alexion expects that the combined company would achieve annual cost savings that reach at least $150m in 2017.

The deal also expands Alexion’s metabolic franchise with the addition of Kanuma (sebelipase alfa) for Lysosomal acid lipase (LAL) deficiency.

Kanuma is a recombinant form of the human LAL enzyme under development by Synageva as an enzyme replacement therapy for LAL Deficiency, while the drug has also been granted orphan designation by the FDA, EMA and Japan’s MHLW.

Synageva president and chief executive officer Sanj Patel said: "As Kanuma moves closer toward patients who suffer from LAL Deficiency, and the other pipeline programs continue to progress, I am confident that this transaction will help continue to improve the lives of patients with LAL Deficiency and other devastating, rare diseases for years to come."