Apple (AAPL) set to open Wednesday with monster rally on Q3 earnings beat >>> READ MORE

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.

ForestLaboratories185Forest 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.

Amazon Buys Digital Comics App ComiXology
Amazon Buys Digital Comics App ComiXology

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.

More Drug Stock News:


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

©2016 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.