Galenica (OTC:GNHAY) has agreed to buy Relypsa (NASDAQ:RLYP) for $32 per share in cash, or about $1.53B, representing a 59% premium to Wednesday's close.
The acquisition gives the Swiss company's Vifor Pharma unit a U.S. commercial network and global rights to Relypsa's drug Veltassa, which was the first American medicine in 50 years to be approved for hyperkalemia.
After the transaction, Galenica plans to split into two separate listed companies.
Relypsa (RLYP +16.6%) jumps on increased volume in response to rumors that Merck (MRK +0.5%) may be eyeing the company. Actelion Pharmaceuticals (OTCPK:ALIOY -0.4%) is another rumored suitor considering AstraZeneca's (AZN +0.4%) recent takeover of ZS Pharma (ZSPH -0.1%).
Relypsa's sole product is Veltassa (patiromer for oral suspension) for the treatment of hyperkalemia (abnormally high levels of serum potassium), cleared by the FDA on October 21.
Traders are moving into Relypsa (NASDAQ:RLYP) premarket, shares are up 17% on increased volume in apparent response to AstraZeneca's announced $2.7B takeover of ZS Pharma, whose lead product candidate is ZS-9 for the treatment of hyperkalemia (excess potassium in the blood). The New Drug Application (NDA) is currently under FDA review. The PDUFA date is May 26, 2016.
Relypsa's treatment for hyperkalemia, Veltassa (patiromer for oral suspension), was cleared by the FDA a few weeks ago.
One potential suitor for Relypsa could be Actelion Pharmaceuticals (OTCPK:ALIOY) who was recently in strategic discussions with ZS.