OPKO Health to acquire Transition Therapeutics in $60 million deal

US drugmaker OPKO Health (Nasdaq: OPK) has entered a definitive agreement under which OPKO will acquire Transition Therapeutics (TSX: TTH), a Canada-based clinical stage biotechnology company, whose shares shot up 108% to $1.46 on the news.

Under the terms of the agreement approved by the boards of directors of both companies, Transition Therapeutics security holders will receive around 6.4 million shares of OPKO common stock. Based on the moving average price of OPKO common stock for the five trading days preceding the signing of the agreement, the transaction is valued at about $60 million, or $1.55 per share of Transition Therapeutics common stock, based on current outstanding shares. The companies expect the transaction to close during the second half of 2016, subject to approval of Transition’s stockholders and other customary conditions.

The Transition Therapeutics clinical portfolio includes: