OPKO Health Inc has announced that it would purchasing Prolor Biotech Inc, the biopharmaceutical ecompany from Israel through an all-stock deal that is estimated to be worth US$480 million. The moves is also expected to expand the existing portfolio of specialty drugs of OPKO Health.
According to the holders of Prolor common shares would be receiving 0.9951 shares of OPKO for each share of Prolor. The deal, as announced by the companies, would value each Prolor share at US$7.00 and would close by 2013's second half. This offer includes a premium of 20% over Prolor's closing share value last Tuesday of US$5.83 at the AMEX. In comparison, the share values in Tel Aviv jumped by 14.2% to 24.1 shekels or US$6.66 per share.
Prolor has its own version of the human growth hormone, hGH-CTP and this version has passed four clinical trials and testing. One of the tests conducted included a trial in adults having growth hormone deficiencies.
According to OPKO CEO Phillip Frost, "This transaction is consistent with OPKO's stated objective of broadening our portfolio of market-transforming therapies in selected specialty markets."
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