Salix Pharma agrees to acquire Santarus for USD2.6 billion

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Salix Pharmaceuticals Ltd agreed to purchase Santarus Inc for USD32 per share or USD2.6 billion, according to a report published by Reuters.

The acquisition deal between the two pharmaceuticals company wouldallow Salix Pharma to extend its product lines with a set of complementary products from Santarus. The new combined company's product portfolio would have a total of 22 items. According to Salix Chief Executive Carolyn Logan, the two groups currently do not have overlapping target markets, said the report.

Salix would expect the agreement to be completed early 2014. It would also expect a significant increase in its earnings as a result of the acquisition. The deal would still be subject to the approval of the boards of both firms, Reuters said.

Salix is being advised on the deal from Jefferies LLC with Covington & Burling LLP as its legal adviser. Santarus sought advise from Stifel, Nicolaus & Co with Latham & Watkins LLP as its legal counsel, the report stated.

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Reuters, Salix Pharmaceuticals Ltd

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