FURX, FRX: Forest Labs to Buy Furiex for $1.5B

The deal comes as Forest is being purchased by Actavis


On Monday, Forest Labs (FRX) said that it would acquire Furiex Pharmaceuticals (FURX). Not surprisingly, FURX shares jumped almost 30% on the news.

ForestLaboratories185 FURX, FRX: Forest Labs to Buy Furiex for $1.5BForest Labs said it will pay $95 per share to purchase Furiex. FURX stock closed at $80.15 a share on Friday. By mid-day trading on Monday, FURX stock was trading over $100 per share. Forest Labs will also pay up to another $360 million if the development of Furiex’s irritable bowel syndrome drug meets certain criteria, putting the total value of the deal as high as $1.5 billion, the Associated Press notes.

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The Furiex purchase comes as Forest Labs is itself being acquired by Actavis PLC (ACT) for $25 billion in a deal that will close by mid-year. Forest Labs indicated that the Furiex deal was approved by Actavis.

Shares of Forest Labs and Actavis both fell about 1% in Monday mid-day trading.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/04/furx-frx-forest-labs-buy-furiex-1-5b/.

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