Salix (SLXP) is merging with Italian drug developer Cosmo Pharma's Cosmo Technologies unit in a deal that will allow Salix to be domiciled in Ireland, and reap the associated tax benefits. Salix shareholders will own slightly less than 80% of the combined company, and Cosmo shareholders slightly more than 20%.
Salix declares the merger eliminates its Uceris royalties and milestone payments, and also "provides substantial opportunities with rifamycin MMX for conditions of the colon."
The merger is expected to close in Q4. Salix expects it'll be "modestly accretive" to EPS in 2016, and "increasingly accretive" afterwards. It's the latest in a string of tax inversion deals announced by U.S. healthcare companies.