Azur Pharma agrees to all-stock merger with Jazz Pharma to create firm with $474 million revenues

USA-based drugmaker Jazz Pharmaceuticals (Nasdaq: JAZZ) and privately-held Azur Pharma have agreed to combine in an all-stock transaction that creates a specialty pharmaceutical company incorporated in Ireland with a diversified portfolio of products currently marketed in the USA. The combined company would be named Jazz Pharmaceuticals plc. Jazz shares fell 5.1% to $41.51 in after-hours trading last night, having gained 2% to $43.74 by 4pm.

n completion of the merger, shareholders of Jazz would own slightly under 80% of Jazz Pharmaceuticals plc, with Azur shareholders owning slightly over 2%0. The combined company is expected to have a capitalization of around 60 million fully diluted shares, which would trade on the Nasdaq. The transaction will be taxable to the Jazz Pharmaceuticals Inc US shareholders.

Azur Pharma is a privately-held, profitable specialty pharmaceutical company headquartered in Dublin, Ireland, with US operations in Philadelphia. The company markets 10 specialty pharmaceutical products in the USA in the central nervous system (CNS) and women's health areas, with expected 2011 net sales of around $95 million to $100 million. Jazz had sales last year of $173.8 million.