Salix Pharmaceuticals to buy Santarus for $2.6 billion

Salix Pharmaceuticals Ltd, a developer of  drugs and medical devices for treating  gastrointestinal disorders, today struck a deal to buy Santarus Inc, for about $2.6 billion, in order to strengthen its presence in the gastroenterology market.

Salix will pay $32.00 per share in cash, a 36-per cent premium over Santarus' 6 November closing price of $23.53 per share.

The proposed transaction has been unanimously approved by the boards of both companies and the deal is expected to close in the first quarter of 2014.

Santarus is a specialty biopharmaceutical company focused on developing proprietary products that address the needs of patients treated by physician specialists.

The company is now focused on commercialising five products, including Uceris extended release tablets for the induction of remission in patients with active, mild to moderate ulcerative colitis and Zegerid, for the treatment of certain upper gastrointestinal disorders.

It is also commercialising Glumetza and Cycloset tablets, which are indicated as adjuncts to diet and exercise to improve glycemic control in adults with type 2 diabetes, and Fenoglide tablets, which is indicated as an adjunct to diet to reduce high cholesterol, and are promoted to endocrinologists and other physicians who treat patients with type 2 diabetes.