Synageva Biopharma Corp. Shares Soar On Buyout Deal With Alexion Pharmaceuticals Inc.

Synageva Biopharma Corp.

shares more than doubled Wednesday when the company agreed to be acquired for cash and stock worth $230 a share by Alexion Pharmaceuticals Inc.

. Lexington, Massachusetts-based Synageva changed hands recently at $202.48, up $106.61; Alexion shares fell 11 percent to $150.24. Alexion said the $8.4 billion deal will boost its adjusted earnings starting in 2018 and strengthen its leadership in therapies for rare diseases. Alexion has a current market capitalization of about $29.98 billion, versus $7.6 billion for Synageva. Cheshire, Connecticut-based Alexion also increased its buyback authorization to $1 billion, from $500 million authorized in December. Alexion has obtained $3.5 billion in financing for the transaction from Bank of America Merrill Lynch and J.P. Morgan. In addition to boosting 2018 profits, Alexion said the deal will result in annual cost synergies that will reach at least $150 million in 2017. Regulatory decisions for Synageva's Kanuma treatment are expected later this year in the U.S. and Europe, the companies said. Kanuma is intended to treat a potentially fatal and rare blood and liver condition called Lysosomal Acid Lipase Deficiency. Under the deal, Alexion will pay $115 in cash and 0.6581 Alexion shares, for each share of Synageva. Alexion said the deal is worth $230 a share for Synageva based on the nine day volume-weighted average closing price of Alexion stock through May 5.