Alexion to buy Enobia Pharma for potential $1 billion

US drugmaker Alexion Pharmaceuticals (Nasdaq: ALXN) has reached agreement to acquire privately held Canadian firm Enobia Pharma, which is focused on the development of therapies to treat patients with ultra-rare and life-threatening genetic metabolic disorders, for a consideration that could reach as much as $1.08 billion.

Under the terms of the accord, Alexion has agreed to pay $610 million in cash on consummation of the transaction, and up to $470 million in cash to be paid on achievement of various regulatory and sales milestones. Alexion is not issuing equity in connection with the acquisition. The transaction is subject to customary conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The boards of both companies have approved the transaction and the companies currently anticipate that the transaction will be completed in the first quarter of 2012. Alexion intends to finance the acquisition through cash on hand and $300 million of committed bank debt.

Gains access to first possible treatment for patients with hypophosphatasia